Kenya Signals Possible Free Trade Agreement with India Worth Over $2.1 Billion in Imports

Prime Cabinet Secretary Musalia Mudavadi has signaled that Kenya is open to exploring a deeper trade arrangement with India.

This includes the possibility of a free trade agreement, as part of its broader global trade engagement strategy.

Speaking during the second Khumbhabhisheka Mahotsavam ceremony at the Sri Kalyana Venkateswara Temple in Nairobi, Mudavadi said Kenya should elevate its engagement with India beyond existing cooperation frameworks.

Mudavadi stated that since Kenya has trade arrangements with other countries like China, it’s also time for Kenya to have a conversation with India.

India remains a major trading partner and one of Kenya’s most significant sources of imports in Asia.

Kenya and India Trade Relation

According to Trading Economics, India’s exports to Kenya stood at US$3.07 billion in 2024, while Kenya’s exports to India were approximately US$142 million.

Mudavadi framed the potential Kenya–India engagement as part of Kenya’s broader strategy to expand structured trade agreements with key global markets.

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He highlighted that Kenya is increasingly leaning toward bilateral and preferential trade arrangements to improve market access and strengthen economic ties.

“Perhaps it’s time that Kenya and India went a notch higher and discuss a free trade agreement,” said Musalia.

Despite strong diplomatic ties, trade between Kenya and India remains heavily imbalanced.

Kenya primarily exports agricultural products such as tea, coffee, vegetables, and raw materials, while importing pharmaceuticals, machinery, fuels, chemicals, and manufactured goods from India.

In 2024, Kenya imported about US$1.97 billion in goods from India, compared with exports of roughly US$142 million, reinforcing the structural trade gap between the two economies.

Mudavadi on Kenya Global Trade Partnerships

Mudavadi also noted that Kenya is already engaged and pursuing trade arrangements with several key economies, including the European Union, the United Arab Emirates, the United States, and China, under the FOCAC framework

“We are now talking of a bilateral trade agreement with the United States. We have the preferential trade agreement with China, with Africa under the FOCAC arrangement. And it is now time that we can have a conversation,” stated Mudavadi. 

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The Prime Cabinet Secretary added that Kenya’s engagement with India is “long overdue” in terms of formalized trade discussions, given the historical and economic ties between the two countries.

In fact, it’s long overdue to have a financial trade agreement with India, so that we can amplify the trade and long-standing ties we have had between our two nations,” added Mudavadi.

Kenya is advancing broader trade diplomacy, including efforts to secure improved access for Kenyan exports in major markets.

The government has increasingly focused on bilateral agreements to diversify export destinations and reduce overreliance on a limited number of trading partners.