NAIROBI, Kenya — The United Kingdom has unveiled two major investments aimed at bolstering trade and clean transport in East Africa, marking a significant pivot toward deeper economic engagement with the region.
Announced during the inaugural UK-East Africa Trade and Investment Forum (EATIF) in London, the deals include a $100 million trade finance facility and a $5 million push for electric motorcycle infrastructure in Kenya.
The trade forum – the first of its kind focused solely on East Africa – has brought together policymakers and business leaders from Kenya, Uganda, and Tanzania to connect directly with British investors and lay the groundwork for long-term commercial partnerships.
“We go far when we go together,” said Lord Collins, the UK Minister for Africa, as he emphasized Britain’s commitment to East Africa as a “long-term partner for long-term investment.”
Boosting Cross-Border Trade
The flagship announcement is a joint facility between British International Investment (BII) and Standard Chartered Bank to improve access to trade finance across Kenya and Tanzania.
The initiative is designed to ease the financing burden on small and medium-sized enterprises (SMEs), especially those in critical sectors like food, agriculture, healthcare, and infrastructure.
At least 30% of the funds are earmarked for women-led businesses, qualifying the programme under the 2X Challenge — a global initiative to advance women’s economic empowerment.
BII estimates the facility will support more than $450 million in trade volumes during its lifetime, while helping de-risk transactions that often stall due to limited access to capital and credit.
Greening Kenya’s Two-Wheel Transport
In a nod to climate-smart infrastructure, BII also announced a $5 million investment in ARC Ride, a Nairobi-based electric mobility firm.
The funding will accelerate the rollout of 5,000 electric two-wheelers (popularly known as boda-bodas) and support the expansion of automated battery-swapping stations.
The move is expected to help Kenya cut over 100,000 metric tonnes of CO₂ annually — the equivalent of taking more than 20,000 petrol-powered motorbikes off the road each year.
Boda-bodas, central to East Africa’s informal transport economy, trace their roots to cross-border routes between Kenya and Uganda.
ARC Ride’s battery-as-a-service model aims to modernize this sector, reduce emissions, and offer cheaper, cleaner rides for the region’s rapidly urbanizing populations.
Kenya Makes Its Pitch
Speaking at the forum, Kenya’s Principal Secretary for Investment Promotion, Abubakar Hassan Abubakar, touted the country as a regional leader for private capital, with “a great portfolio of opportunities” in clean energy, healthcare, manufacturing, and agribusiness.
“We are proud to be part of the UK-EATIF and welcome the regional focus that fosters economic integration,” he said.
The UK hopes to replicate the success of similar trade forums it has held in West and Central Africa, which generated over £1 billion in deals across three years.
Backed by UK Export Finance and BII, the East Africa forum aims to build a robust pipeline of investments in infrastructure, renewable energy, and industrial development.
Organizers say this week’s engagements — which wrap up on May 22 — are just the beginning, with more follow-up deals and business dialogues expected in the months ahead.
