NAIROBI, Kenya — In a timely move to future-proof Kenya’s small businesses against tough climate-related trade laws, Sweden has signed a $2.7 million (Sh349.5 million) deal with TradeMark Africa to drive sustainable and inclusive trade across the country.
The agreement, part of a two-year programme dubbed Kenya Enhanced Trade Environment and Inclusion (KETEI), is laser-focused on helping the country align with global green trade standards—particularly the looming EU Deforestation Regulation (EUDR) that kicks in by mid-2026 for small exporters.
The KETEI programme couldn’t come at a better time. Its core mission? Boost Kenya’s competitiveness under frameworks like the African Continental Free Trade Area (AfCFTA), improve port efficiency, strengthen green logistics infrastructure, and empower women- and youth-owned SMEs to become more resilient in the face of evolving trade regulations.
According to TradeMark Africa, the initiative is set to support MSMEs—60% women-led and 40% youth-led—toward a projected $3 million (Sh388.3 million) increase in export value.
Even more promising: it aims to unlock at least $5 million (Sh647.2 million) in private investment to build greener logistics systems.
“Globally, we are seeing growing demand from consumers for goods that are produced sustainably,” said Marie Ottosson, Sweden’s Head of Development Cooperation in Kenya, at the signing ceremony held Thursday.
“With the EU Deforestation Regulation set to take effect in 2026, we are pleased to support Kenya’s smallholder producers in meeting these requirements and securing continued access to global markets.”
And she’s not wrong about the urgency. The EUDR, passed by the European Parliament in 2023, requires that commodities like coffee and cocoa linked to deforestation must not be placed on the EU market after December 30 this year for large exporters—or after June 30, 2026, for small and micro-enterprises.
To put it in perspective, Kenya’s 2023 export stats were impressive: Sh203.6 billion in horticulture, Sh189.1 billion in tea, and Sh38.4 billion in coffee exports—over 55% of which landed in the EU. That’s a market Kenya can’t afford to lose.
TradeMark Africa’s Kenya Country Director, Lillian Mwai–Ndegwa, stressed the importance of the programme’s inclusive design.
“Sweden’s support enables us to address structural inefficiencies in how goods move and how SMEs are supported, both regionally and globally,” she said. “We must ensure that growth is inclusive, climate-resilient, and future-proof.”
And this isn’t just about compliance. It’s about unlocking new opportunities. Kenya’s AfCFTA strategy, launched in 2022, is already geared toward expanding intra-African trade, catalyzing investment, and fueling sustainable development.
KETEI builds directly on that ambition by ensuring that even the smallest exporters aren’t left behind as global trade shifts toward sustainability.
As the EU tightens its green trade rules, partnerships like this aren’t just helpful—they’re essential. With climate-resilient trade infrastructure, empowered women and youth, and a clear eye on the future, Kenya is positioning itself not only to survive but to thrive in a greener global economy.
