Kenya has indicated it may pursue a deeper trade partnership with India, including the possibility of negotiating a free trade agreement, as part of its wider effort to strengthen global economic ties.
Prime Cabinet Secretary Musalia Mudavadi made the remarks during the second Khumbhabhisheka Mahotsavam ceremony at the Sri Kalyana Venkateswara Temple in Nairobi. He emphasized that Kenya should move beyond its current level of engagement with India and consider a more structured trade framework.
Mudavadi noted that since Kenya already maintains trade arrangements with countries such as China, it is timely to initiate similar discussions with India, which remains one of Kenya’s key trading partners and a major source of imports in Asia.
According to trade data, exports from India to Kenya reached approximately $3.07 billion in 2024, while Kenya’s exports to India stood at about $142 million. Mudavadi positioned the proposed engagement as part of a broader strategy to expand formal trade agreements with important global markets.
He added that Kenya is increasingly pursuing bilateral and preferential trade deals to improve access to international markets and deepen economic relationships. Suggesting the next step forward, he stated that both countries should consider elevating discussions toward a free trade agreement.
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Despite longstanding diplomatic relations, trade between Kenya and India remains significantly imbalanced. Kenya mainly exports agricultural commodities such as tea, coffee, vegetables, and raw materials, while importing pharmaceuticals, machinery, fuel, chemicals, and manufactured products from India.
In 2024, Kenya imported goods worth about $1.97 billion from India, compared to exports of roughly $142 million, highlighting a persistent trade deficit.
Mudavadi also pointed out that Kenya is actively negotiating or implementing trade agreements with several major partners, including the European Union, United Arab Emirates, United States, and China under the Forum on China–Africa Cooperation framework.
He described formal trade engagement with India as overdue, given the strong historical and economic ties between the two nations, and stressed that a structured agreement could help boost trade volumes and strengthen bilateral relations.
Kenya is continuing to advance its trade diplomacy agenda, focusing on securing better market access for its exports while diversifying its trading partners to reduce dependence on a limited number of markets.
