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Kenya and Egypt Target Trade, Energy and Infrastructure in New Strategic Alliance

Date:

NAIROBI, Kenya- Kenya and Egypt have formally begun implementing their Strategic and Comprehensive Partnership, marking a shift from diplomatic pledges to structured economic and political cooperation between two of Africa’s key regional powers.

The move follows high-level consultations in Nairobi between Prime Cabinet Secretary and Foreign Affairs Cabinet Secretary Musalia Mudavadi and Egypt’s Foreign Minister Badr Abdelatty. 

The talks built on commitments made during the January 2025 summit in Cairo between President William Ruto and President Abdel Fattah el-Sisi.

At a joint press briefing, Mudavadi said the focus had shifted from dialogue to delivery.

“We are now translating our Strategic Partnership into tangible outcomes that expand trade, strengthen industrial capacity and promote regional stability,” he said.

Trade Below Potential

Bilateral trade between the two countries reached approximately $567 million in 2024, a figure both governments consider below potential given the size and complementarity of their economies.

To boost commerce, Nairobi and Cairo are fast-tracking the establishment of the Kenya–Egypt Joint Business Council, aimed at streamlining customs procedures, reducing non-tariff barriers and deepening private sector engagement.

Egypt has also signaled its readiness to channel part of its estimated $14 billion African investment portfolio into Kenya, targeting manufacturing, construction, logistics and renewable energy sectors.

Abdelatty described Kenya as a strategic gateway to East Africa.

“Egypt views Kenya as a strategic partner in East Africa. We are committed to enhancing investment flows, strengthening energy cooperation and working closely within the African Union to advance peace and development,” he said.

Energy and Industrial Cooperation

Energy collaboration has emerged as a central pillar of the partnership. Egypt has proposed deploying mobile substations and providing technical expertise in wind and solar energy to accelerate electrification in underserved regions.

The proposal aligns with Kenya’s renewable energy expansion strategy and regional power integration ambitions.

Industrial coordination is also advancing, particularly in pharmaceuticals.

Under a proposed “fill and finish” technology transfer arrangement, Egyptian firms are expected to support the establishment of pharmaceutical production lines in Kenya, a move aimed at reducing reliance on imports and strengthening regional health security.

AU Alignment and Nile Basin Diplomacy

Beyond trade and industry, the two countries signaled closer diplomatic alignment within the African Union, particularly on institutional reform and regional stabilization efforts in the Horn of Africa.

Egypt has also pledged support for Kenyan candidates in international institutions, including Judge Phoebe Okowa’s prospective bid for a seat at the International Court of Justice for the 2027–2036 term.

The question of Nile Basin water governance remains part of the broader framework of cooperation. 

Mudavadi reiterated Kenya’s position that shared water resources must be utilized equitably and in a manner that does not disadvantage any riparian state.

Egypt recently launched a $100 million Nile Development Fund to finance infrastructure projects across basin countries, with Kenya identified as a potential partner for dam construction, irrigation expansion and borehole development in arid regions.

A state visit by President el-Sisi to Kenya is expected later this year, with discussions underway to align it with the Africa–France Summit scheduled for Nairobi in May 2026.

As economic integration, energy collaboration and diplomatic coordination deepen, the Kenya–Egypt partnership is increasingly positioning itself as a structured strategic alignment capable of shaping regional stability and influencing Africa’s geopolitical direction.

Joseph Muraya
Joseph Muraya
With over a decade in journalism, Joseph Muraya, founder and CEO of Y News, is a respected Communications Consultant and Journalist, formerly with Capital News Kenya. He aims to revolutionize storytelling in Kenya and Africa.

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