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Kenya, China deepen trade ties as new deal targets export imbalance

The Brief by The Brief
23rd March 2026
in Business, China Briefs
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Kenya, China deepen trade ties as new deal targets export imbalance

Deputy Presidet Kithure Kindiki and Chia Vice President Han Zheng.during the Kenya–China Business Forum at the JW Marriott Hotel on March 23, 2026

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Kenya has moved to rebalance its long-standing trade ties with China following a new agreement that will grant Kenyan goods duty-free access to the Chinese market starting May 2026.

Speaking in Nairobi on Monday, Deputy President Kithure Kindiki said the deal marks a significant step in addressing a persistent trade imbalance that has favoured China for decades.

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Kindiki made the announcement at a high-level Kenya–China Business Forum at the JW Marriott Hotel in Nairobi alongside visiting Chinese Vice President Han Zheng.

The DP said while Kenya’s imports from China exceed $4.3 billion annually, exports to the Asian economic giant remain low at about $200 million, highlighting the urgent need for corrective measures.

“To correct the trade imbalance which is currently in favour of China, President William Ruto and President Xi Jinping agreed on a Framework Agreement that will see Kenyan products accessing the Chinese market at zero tariff effective May 1, 2026,” Kindiki said.

Under the agreement, a range of Kenyan exports, including value-added coffee, tea, avocados, macadamia, fruits, flowers, vegetables and leather products, will enter China duty-free.

The move is expected to boost Kenya’s export earnings, support local industries and create jobs across agricultural and manufacturing sectors.

The deal represents one of the most significant market access concessions secured by Kenya in recent years, particularly as the country seeks to expand its export base and reduce reliance on imports.

Kenya and China have maintained strong diplomatic and economic ties since 1963, with Beijing playing a central role in financing and constructing key infrastructure projects in the country. These include major road networks, energy projects and the Standard Gauge Railway, which has become a flagship symbol of Sino-Kenyan cooperation.

Kindiki said the relationship between the two countries has remained resilient despite shifting global geopolitics, underpinned by growing trade, investment and people-to-people exchanges.

“China has helped Kenya to build a crucial railway network, and its involvement in road, manufacturing, water and energy infrastructure has its footprints across our land,” he said.

With the widening bilateral trade gap the new tariff-free access is seen as an attempt to unlock opportunities for Kenyan producers in one of the world’s largest consumer markets.

The government is banking on value addition to drive export growth, particularly in agriculture, which remains a major pillar of the economy. By exporting processed goods rather than raw materials, officials say Kenya stands to earn higher revenues and support industrialisation.

The high-level business forum brought together government officials, investors and private sector players from both countries, signalling renewed efforts to deepen commercial ties and attract Chinese investment into Kenya’s priority sectors.

Tags: ChinaChina-Kenya relationsHan ZhengKenya-China relationsKenya–China Business ForumKithure Kindiki
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