NAIROBI, Kenya- Kenya’s export sector is facing mounting pressure from global geopolitical tensions, with the government warning of rising risks to trade flows, foreign exchange stability, and market access.
Appearing before the Parliamentary Departmental Committee on Trade, Industry and Cooperatives, Trade Cabinet Secretary Lee Kinyanjui said the current global environment, particularly conflict in the Middle East, is disrupting key export routes and threatening one of Kenya’s fastest-growing markets.
Middle East disruption hits exports
Kinyanjui noted that the Middle East has become a critical destination for Kenyan exports, especially fresh produce.
However, ongoing instability in the region has disrupted not only direct trade but also transit routes used to access wider international markets.
The disruptions are already triggering logistical challenges, including higher transportation costs, shipment delays, and uncertainty for exporters, particularly in the horticulture sector, a major foreign exchange earner.
“The current geopolitical environment continues to exert significant pressure on global trade flows, with direct implications for Kenya’s export sector,” Kinyanjui told lawmakers.
Push for market diversification
In response, the government is now prioritising diversification of export markets to cushion farmers and manufacturers from over-reliance on volatile regions.
Kinyanjui said expanding access to alternative global markets will be critical in ensuring stability, particularly as exporters grapple with shifting trade dynamics and supply chain disruptions.
He pointed to the Tripartite Free Trade Area (TFTA) as a key framework that Kenya can leverage to unlock new opportunities across the continent.
Untapped potential in intra-African trade
Despite progress in regional integration, intra-African trade remains relatively low — currently estimated at 17% of total trade — highlighting significant room for growth.
The CS said strengthening trade within Africa could help build resilience against external shocks while reducing dependence on distant and often volatile markets.
Budget to reflect global realities
The Cabinet Secretary was presenting the Supplementary Budget Estimates for the 2025/2026 financial year, where he defended additional funding requests for the Ministry of Investments, Trade and Industry.
He argued that the ministry’s budget must be aligned with emerging global dynamics, including geopolitical risks, shifting trade patterns, and the need to protect Kenya’s economic interests.
Key priorities include strengthening multilateral partnerships, investing in trade-enabling infrastructure, and enhancing the country’s capacity to respond to external shocks.
Kinyanjui was accompanied by Trade Principal Secretary Regina Ombam and the chief executives of state agencies under the ministry, underscoring the government’s coordinated approach to safeguarding Kenya’s trade sector.
