Kenya and India Forge Ahead with Bilateral Trade Agreement Negotiations

Kenya and India have announced plans to commence formal negotiations for a comprehensive bilateral trade agreement. The announcement was made by Kenya's Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, Musalia Mudavadi, during India's 77th Republic Day celebrations in Nairobi.

This move is part of Kenya's broader strategy to deepen economic ties with its major global partners, following recent agreements with the European Union, the United Kingdom, and ongoing discussions with China and the United States.

The primary goal of the negotiations is to enhance market access and stimulate greater investment flows between the two nations. While bilateral trade has shown strong growth—reaching $3.351 billion in 2024—there exists a significant trade imbalance that the agreement aims to address. Kenya imported goods worth $3.175 billion from India while exporting only $176.34 million. The deal seeks to create a more "mutually favourable trade balance" by unlocking opportunities for Kenyan exports, thereby tapping into the immense potential of the economic relationship.

Beyond trade, Mudavadi highlighted the deep strategic alignment between Kenya and India. He noted India's role as a vocal supporter of Kenya's position as a host for major UN agencies and its advocacy for permanent African Union membership in the G20 during its 2023 presidency. Both nations share a commitment to democracy and reforming global institutions like the UN Security Council. As fellow Indian Ocean littoral states, they also share mutual concerns regarding maritime security.

Furthermore, India is a critical development partner for Kenya in technology, innovation, and healthcare. Indian High Commissioner Adarsh Swaika noted that India supplies over 50% of Kenya's pharmaceutical imports and is a global leader in digital payments and startup ecosystems, offering avenues for shared progress.

This negotiation with India is not an isolated event but a key component of Kenya's proactive and diversified foreign economic policy. Nairobi has already finalized trade agreements with the European Union and the United Kingdom. It has also concluded an "Early Harvest Arrangement" with China, which serves as an interim preferential trade framework while a full economic partnership is negotiated. Additionally, Kenya is pursuing a dedicated bilateral trade agreement with the United States to complement the Africa Growth Opportunity Act (AGOA).

While a specific timeline for the Kenya-India negotiations was not provided, the commencement of talks signals a significant step toward a more structured and balanced economic partnership. The agreement promises to strengthen commercial links, foster investment, and solidify a strategic alliance rooted in shared history and common global interests.