Kenya, India move closer to trade deal as talks focus on balancing economic ties
The Kenyan Diaspora - 03 May 2026
Kenya, India move closer to trade deal as talks focus on balancing economic ties
By Faith JL
Kenya and India are stepping up negotiations aimed at addressing a growing trade imbalance and advancing discussions on a long-awaited Free Trade Agreement (FTA) designed to expand market access between the two countries.
The renewed momentum followed high-level talks in Nairobi between Kenyan officials and India’s Commerce Secretary Rajesh Agarwal, where both sides explored ways to strengthen economic cooperation and deepen bilateral trade relations.
Focus on narrowing the trade gap
Kenya has been pushing for a more balanced trading relationship, with a strong focus on boosting exports, attracting investment, and improving access for Kenyan products in the Indian market. The proposed FTA is expected to reduce trade barriers and open new opportunities for businesses across multiple sectors.
Current trade volumes between the two countries are estimated at between $3.5 billion and $4.3 billion, with India remaining one of Kenya’s largest trading partners. However, Kenya continues to record a significant trade deficit, importing far more goods such as refined petroleum products and pharmaceuticals than it exports, which mainly include tea, legumes, and soda ash.
Joint economic discussions and agreements
The developments were discussed during the 10th India Kenya Joint Trade Committee meeting, co-chaired by Agarwal and Kenya’s Principal Secretary for Trade Regina Ombam. The meeting reviewed progress made since previous engagements and reaffirmed both countries’ commitment to a more structured economic partnership.
The talks concluded with agreements covering key sectors including trade facilitation, agriculture, pharmaceuticals, digital infrastructure, manufacturing, energy, and capacity building.
Both delegations also emphasized the need to streamline trade systems and resolve long-standing barriers affecting cross-border commerce.
Customs cooperation and trade efficiency
A major highlight of the engagement was the signing of a memorandum of understanding between the Central Board of Indirect Taxes and Customs (CBIC) and the Kenya Revenue Authority (KRA), aimed at improving the exchange of pre-arrival cargo information.
The agreement is expected to speed up customs clearance, strengthen risk management systems, and enhance the overall efficiency of trade flows between the two countries.
Business sector engagement
Alongside government discussions, an India Kenya Business Forum brought together private sector leaders from both countries, including representatives of the Confederation of Indian Industry (CII) and the Kenya National Chamber of Commerce and Industry (KNCCI).
The two institutions also signed an agreement to strengthen business linkages, promote investment partnerships, and support closer collaboration between enterprises.
Looking ahead
With ongoing FTA negotiations, improved customs cooperation, and growing private sector involvement, both Kenya and India are positioning themselves for a more diversified and balanced trade relationship.
Officials from both sides expressed optimism that deeper collaboration will unlock new opportunities in manufacturing, agriculture, digital services, fintech, infrastructure, and renewable energy, paving the way for stronger long-term economic ties.
