Kenya and UAE Strengthen Economic Ties with New Trade and Investment Initiatives

Kenya’s relationship with the United Arab Emirates (UAE) is reaching new heights as the two countries negotiate a Comprehensive Economic Partnership Agreement (CEPA) that could reshape trade and investment dynamics between them. Currently, UAE is one of Kenya’s top export markets, especially for agricultural products like fruits, vegetables, and cut flowers. With the CEPA, both countries aim to expand this partnership beyond traditional trade, paving the way for broader investment and development opportunities.

Kenya’s Cabinet Secretary for Investment, Trade, and Industry, Salim Mvurya, highlighted this transformative vision during a recent business forum. CS Mvurya underscored the agreement's importance for Kenya’s economic landscape, stating,

“We are looking forward to a comprehensive agreement that will bring significant leverage for UAE investors, opening avenues across diverse sectors in Kenya and across East Africa.”

The CEPA negotiations have been ongoing for several years, with substantial progress in recent months. Once finalized, this agreement is expected to strengthen the trade framework and formalize long-term cooperation between Kenya and the UAE. “Investing in Kenya is investing in Africa,” CS Mvurya explained, emphasizing Kenya’s strategic position as a gateway to the African market. With access to the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), Kenya offers investors a market of 1.4 billion people across the continent.

Kenya’s appeal to investors also lies in its special economic zones (SEZs) and export processing zones (EPZs), which offer targeted incentives to attract international investment. By developing these zones and positioning Kenya as a hub for business and innovation, the government hopes to tap into sectors such as manufacturing, tourism, technology, renewable energy, and agribusiness.

Beyond the CEPA, Kenya’s efforts to enhance its investment environment include a proposed Business Amendment Bill designed to support tax benefits and credits for foreign investors. “We are working on a business amendment bill that will provide further incentives for investments, including tax credit opportunities,” CS Mvurya shared, highlighting Kenya's commitment to improving its economic competitiveness.

“We are happy to host this delegation and look forward to more UAE investments in energy, technology, and agribusiness,” Mvurya expressed, signaling Kenya’s eagerness to welcome international partnerships.

Both nations are committed to ensuring the agreement delivers long-term value, fostering a mutually beneficial relationship that will drive job creation, innovation, and economic growth in Kenya and the UAE.

The 254 Report will continue to bring you updates on this historic trade agreement and its impact on Kenya’s economy. Stay tuned for more insights on how this strategic alliance will shape the future of trade and investment between Kenya and the UAE.