NAIROBI, Kenya – Kenya is poised to expand its footprint in the African market as the Kenya National Chamber of Commerce and Industry (KNCCI) intensifies efforts to unlock opportunities under the African Continental Free Trade Area (AfCFTA).
Speaking at the KNCCI Exporters’ Forum, Chamber President Dr. Erick Rutto emphasized that Kenya is currently underutilizing its potential, with a disproportionate focus on East African Community (EAC) trade while largely neglecting the broader continental market.
The AfCFTA, which brings together 1.3 billion people with a combined GDP of over $3.4 trillion, presents a game-changing opportunity for Kenyan businesses.
Kenya’s exports to Africa currently stand at $2.7 billion annually, accounting for 40% of its total exports.
However, Dr. Rutto noted that full implementation of AfCFTA could boost these figures by 25% within five years, injecting an additional $675 million into the economy.
Data presented at the forum revealed that Kenya sends a staggering 65% of its African exports to EAC nations—primarily Uganda, Tanzania, and Rwanda—while the remaining 35% is spread across more than 45 other African countries.
This heavy reliance on the EAC market, valued at $1.8 billion, leaves a significant untapped potential in regions such as West Africa, where Kenya’s penetration remains minimal.
“We have established strong trade ties within East Africa, but we are only scratching the surface of the broader African market,” Dr. Rutto said. “The AfCFTA gives us the framework to diversify and scale up our export destinations.”
The composition of Kenya’s exports varies significantly depending on the region.
While manufactured goods, agricultural products, and petroleum dominate trade with EAC nations, exports to the rest of Africa are heavily skewed toward tea (22%), horticultural products (18%), and pharmaceuticals (12%).
This underscores the need for tailored strategies to cater to different regional markets.
KNCCI has already made inroads in the Southern African market, particularly Zambia, where trade missions have facilitated multi-million-shilling deals.
Kenyan tea, coffee, processed foods, and construction materials have gained traction in Zambian retail outlets, demonstrating the practical benefits of intra-African trade.
Encouraged by this success, KNCCI is now turning its attention to West Africa.
Next week, a high-level trade delegation will visit Nigeria and Ghana to explore new business opportunities.
Despite Nigeria’s annual import bill of $54 billion, Kenyan products make up less than 0.1% of the market—a gap KNCCI aims to bridge.
“There is a $300 million opportunity in agro-processed products alone, while pharmaceuticals and professional services have the potential for 45% and $120 million in annual revenue growth, respectively,” Dr. Rutto said.
Despite the promise of AfCFTA, businesses still face significant hurdles. Transport costs within Africa account for 25-35% of the final product price—far above the global average of 15%.
Non-tariff barriers affect nearly two-thirds of potential exports, while cumbersome documentation processes mean it takes an average of 49 days to process export documents, compared to a global best practice of 10 days.
Financing remains another critical challenge. Only 28% of Kenyan small and medium-sized enterprises (SMEs) report having adequate access to trade finance.
Dr. Rutto urged financial institutions to develop innovative products tailored for businesses engaged in intra-African trade.
KNCCI has been proactive in addressing these challenges through various initiatives:
- AfCFTA Information Hub: A platform offering market intelligence to exporters.
- Capacity Building: Over 1,000 businesses trained on AfCFTA compliance.
- Policy Advocacy: Efforts to streamline export procedures and eliminate non-tariff barriers.
- Digital Platform (Isoko): A marketplace linking Kenyan exporters to buyers across Africa.
Dr. Rutto called on the government to accelerate policy reforms that will make it easier for Kenyan businesses to trade across Africa.
He also urged development partners to align their support programs with the priorities identified at the forum.
Looking ahead, KNCCI projects that full AfCFTA implementation could increase intra-African trade by 52% by 2030.
The Chamber remains committed to breaking barriers and opening new markets for Kenyan businesses.
“Our success in Zambia proves that when barriers fall, trade flourishes,” Dr. Rutto said. “What we’ve achieved between Nairobi and Lusaka can be replicated from Cairo to Cape Town, from Mombasa to Lagos. The future of Africa’s prosperity isn’t just about what we sell to the world—it’s about what we build together.”
