Kenya and Pakistan Eye Stronger Trade and Economic Relations

LAHORE: The High Commissioner of Kenya, Lt Gen Peter Mbogo Njiru (Retd), has stated that there is considerable scope for enhancing commercial and economic ties between Kenya and Pakistan. He noted that the growing enthusiasm among Pakistani business owners to reinforce bilateral trade and investment links with Kenya is a promising sign.

He made these remarks at the Lahore Chamber of Commerce and Industry (LCCI). The LCCI President delivered the welcome address, highlighting the potential for trade and investment in both nations. Also in attendance were Kenya’s Commercial Attache Bonface Njoroge Njuguna, Honorary Consul Dr. Faisal Khokhar, and LCCI Executive Committee members Khurram Lodhi, Ahsan Shahid, Amina Randhawa, Syed Salman Ali, Amir Ali, and Karamt Ali Awan.

The High Commissioner mentioned that the eagerness of Pakistani entrepreneurs to forge trade connections with Kenya is heartening. He emphasized that business-to-business collaborations are crucial for maintaining sustainable commercial growth between the two countries.

Njiru affirmed that Kenya is receptive to foreign direct investment across all sectors, with the government dedicated to providing comprehensive support to international investors. He encouraged Pakistani businesses to capitalize on the abundant economic prospects available in Kenya, especially in sectors like healthcare, pharmaceuticals, agriculture, textile manufacturing, and leather.

Njiru pointed out that Kenya’s advantageous geographical position serves as a vital gateway to East and Central Africa. He added that the cost-effectiveness and feasibility of shipping goods from Karachi to Mombasa make Kenya an optimal entry point for Pakistani exports targeting African markets.

He also lauded Pakistan’s Look Africa initiative, describing it as a progressive and insightful policy framework that aligns well with Kenya’s economic goals. He assured the business community that any obstacles hindering bilateral trade would be resolved through collaboration with relevant stakeholders.

LCCI President Mian Abuzar Shad mentioned that Pakistan and Kenya established diplomatic relations in 1964, which have since been amicable and productive. He noted that both countries are members of the Commonwealth of Nations, sharing common values and trade potential.

He stated that the LCCI regards Kenya as a key trade partner for Pakistan in Africa and a crucial gateway to East Africa. He also mentioned that the Government of Pakistan launched the Look Africa Policy in 2017 to stimulate economic and trade relations with African nations, including Kenya, Nigeria, South Africa, Morocco, Senegal, Algeria, Egypt, Sudan, Tanzania, and Ethiopia. Through this initiative, Pakistan aims to negotiate Preferential Trade Agreements (PTAs) with various African regional blocs to increase trade volume.

He said that the Look Africa Plan is projected to significantly aid Pakistan’s efforts to unlock the vast export potential in African markets.

Mian Abuzar Shad emphasized that the support and collaboration of the Kenyan High Commission would be essential in achieving these objectives. He provided key trade data, noting that Pakistan’s exports to Kenya in fiscal year 2023–24 totaled $315 million, while imports from Kenya were approximately $614 million. He further stated that in the first eleven months of the current fiscal year 2024–25, Pakistan’s exports to Kenya reached $225 million, with imports at around $500 million.

The LCCI president emphasized the importance of reducing the existing trade deficit and expressed the desire to increase bilateral trade volume to at least $2 billion in the coming years. He noted that Kenya’s total imports are $20.2 billion, while its global exports are around $8.3 billion, indicating that Pakistan’s share in Kenya’s overall trade remains low. He urged the Kenyan High Commission to proactively connect Kenyan importers with Pakistani exporters.

He mentioned that Pakistan primarily exports rice, textiles, pharmaceuticals, and wooden articles to Kenya, while importing tea, dried vegetables, fruits, cut flowers, and hides/skins. He emphasized the need to broaden the trade portfolio and identify additional tradable items such as pharmaceuticals, surgical instruments, automotive parts, IT services, sports goods, and light engineering products.

Mian Abuzar Shad also highlighted the potential for both countries to establish joint ventures in sectors like defense, education, agriculture, and tourism. He suggested enhancing B2B contacts through trade delegations and single-country exhibitions in both Pakistan and Kenya. He requested the Kenyan High Commission to provide information on Kenya’s duty structures, legal requirements, and import procedures to help Pakistani exporters better understand and access the Kenyan market.

The LCCI president assured the High Commissioner of the Lahore Chamber’s full commitment to strengthening economic ties with Kenya and expressed his anticipation of maintaining robust institutional collaboration with the Kenyan High Commission in Pakistan. He concluded that with shared dedication and ongoing engagement, Pakistan and Kenya can unlock new opportunities for mutually beneficial trade and investment.