Kenya Country Profile

Kenya is one of East Africa’s most dynamic and diversified economies, acting as a commercial, financial, and logistics hub in the region. Strategically located along the Indian Ocean and bordered by Ethiopia, Uganda, Tanzania, Somalia, and South Sudan, Kenya serves as a gateway to East and Central Africa for trade and investment.

  • Capital: Nairobi

  • Population: ~56 million (2024 est.)

  • Official Languages: English and Swahili

  • Currency: Kenyan Shilling (KES)

  • Time Zone: GMT+3

  • Major Cities: Nairobi, Mombasa, Kisumu, Nakuru, Eldoret

Economic Landscape

Kenya’s economy is classified as lower-middle-income but is one of the most industrialized in Sub-Saharan Africa outside of South Africa. It has maintained steady GDP growth over the past decade, supported by strong public investment in infrastructure, services, agriculture, and innovation.

Key Economic Sectors:

  1. Agriculture
    Agriculture is the backbone of Kenya’s economy, contributing around 30% of GDP and employing over 70% of the rural population. Key exports include tea (one of the world’s largest producers), coffee, cut flowers, vegetables, and horticultural products.

  2. Services and ICT
    Kenya is a regional leader in fintech and mobile technology, with innovations like M-Pesa revolutionizing mobile payments. Nairobi is often called “Silicon Savannah” due to its growing tech startup ecosystem.

  3. Tourism
    Kenya is renowned for its safaris, national parks, and coastal resorts. Wildlife-based tourism remains a vital source of foreign exchange.

  4. Manufacturing
    The sector includes food processing, textile and apparel (under AGOA), cement, and light industrial products. Kenya’s manufacturing is seen as a future driver of job creation and export growth.

  5. Construction and Infrastructure
    With increasing urbanization, construction of roads, railways, ports, and housing projects is booming. The LAPSSET Corridor Project is a flagship initiative to connect Kenya with Ethiopia and South Sudan.

Trade and Export Profile

Kenya has a diverse export base and strong regional trade ties, particularly within the East African Community (EAC) and COMESA (Common Market for Eastern and Southern Africa).

Top Export Products:

  • Tea

  • Horticultural products (flowers, vegetables, fruits)

  • Coffee

  • Cement and construction materials

  • Apparel and textiles

  • Livestock and leather goods

Top Import Products:

  • Petroleum products

  • Machinery and equipment

  • Vehicles and spare parts

  • Pharmaceuticals

  • Plastics and chemicals

  • Iron and steel

Major Export Partners:

  • Uganda

  • Netherlands

  • United Kingdom

  • United States

  • Pakistan

  • Tanzania

Major Import Partners:

  • China

  • India

  • United Arab Emirates

  • Japan

  • Saudi Arabia

Kenya benefits from trade agreements including the African Continental Free Trade Area (AfCFTA), EAC Customs Union, AGOA (U.S.), and an Economic Partnership Agreement (EPA) with the European Union.

Logistics and Infrastructure

Kenya has invested heavily in transport infrastructure to improve regional trade connectivity and cargo efficiency.

Ports:

  • Port of Mombasa:
    The busiest port in East and Central Africa, handling over 30 million tons of cargo annually. It serves as a critical transit point for landlocked countries such as Uganda, Rwanda, Burundi, and South Sudan.

  • Lamu Port (under development):
    Part of the LAPSSET Corridor, it is expected to enhance trade routes to Ethiopia and South Sudan once fully operational.

Airports:

  • Jomo Kenyatta International Airport (JKIA) – Nairobi

  • Moi International Airport – Mombasa

  • Wilson Airport – Nairobi (domestic and regional flights)

JKIA is a major aviation hub in Africa and plays a central role in cargo and passenger transport.

Railways:

Kenya has modernized its railway system through the Standard Gauge Railway (SGR), linking Mombasa to Nairobi and beyond. Plans are underway to extend the SGR to Uganda and Rwanda for broader regional integration.

Business Environment

Kenya’s business environment has improved significantly due to government reforms in taxation, digital registration, and access to credit. Nairobi is considered the financial and commercial heart of East Africa.

Ease of Doing Business:

Kenya ranks relatively high in Africa for starting a business, getting credit, and protecting minority investors. The government has reduced the number of procedures and time required to start a business.

Investment Opportunities:

  • Agro-processing and value addition in agriculture

  • Renewable energy (solar, wind, geothermal)

  • Real estate and affordable housing

  • ICT and mobile technology

  • Healthcare and pharmaceuticals

  • Textile and apparel manufacturing (export-oriented)

Foreign investors can establish wholly owned companies and repatriate profits, provided they comply with licensing and taxation laws.

Trade with Africa

Kenya is one of the largest intra-African traders. Its major African trade partners include:

  • Uganda – Largest export destination, mostly for manufactured goods

  • Tanzania and Rwanda – Agricultural and manufactured products

  • Ethiopia – Machinery and processed goods

  • South Sudan – Food, beverages, and consumer goods

The Northern Corridor (Mombasa–Kampala–Kigali–Juba) and LAPSSET project are transforming Kenya into a regional trade logistics hub.

Government Incentives

To promote trade and investment, Kenya offers several incentives:

  • Export Processing Zones (EPZs) – Tax holidays, duty-free imports, simplified procedures

  • Special Economic Zones (SEZs) – Designed to boost exports and manufacturing

  • Investment Promotion Act – Provides guarantees and investor protections

  • VAT exemptions for capital equipment and inputs in key sectors

The Kenya Investment Authority (KenInvest) provides support for local and foreign investors.

Risks and Challenges

While Kenya is a high-potential market, businesses must be aware of the following challenges:

  • Political tensions and periodic unrest, especially during elections

  • Bureaucracy and corruption in certain government processes

  • Infrastructure gaps in rural areas

  • Currency fluctuations

  • Climate variability affecting agriculture

Mitigation through local partnerships, insurance, and legal compliance is advised.

Business Culture

  • English is widely spoken in business settings.

  • Business is formal but relationship-driven.

  • Hierarchical structures are common; decisions may take time.

  • Punctuality is appreciated, though flexibility is often required.

  • Gifts are not expected but may be given during celebrations or after deals.

Kenya stands out as a leading economy in East Africa with strategic access to landlocked markets, a skilled workforce, and a vibrant entrepreneurial ecosystem. Its focus on infrastructure, digital innovation, and regional integration makes it a top destination for trade, investment, and business expansion.

For exporters, Kenya offers access not only to its domestic market but also to neighboring countries through efficient logistics corridors and preferential trade agreements. For importers, the country provides a steady supply of high-quality agricultural goods, textiles, and specialized manufactured products.

WeTradeAfrica encourages businesses to explore Kenya’s potential and engage with reliable partners through our platform—your gateway to East African trade.