Kenya Positions Itself as Digital Trade Hub in Landmark EU-Kenya Forum Nairobi
Nairobi– May 12, 2025
The Principal Secretary for the State Department for Investment Promotion Mr. Abubakar Hassan Abubakar today joined key stakeholders at the second edition of the European Union-Kenya Business Forum, held at the Emara Ole-Sereni Hotel in Nairobi. Thehigh level event themed "Digitalizing Trade," brought together public and private sector leaders from Kenya and the European Union to explore new opportunities for sustainable investment and trade in the digital age.
The forum marks a pivotal moment in EU-Kenya relations, coming shortly after the EU-Kenya Economic Partnership Agreement (EPA) which entered into force in July 2024.
Speaking during the event, President William Ruto emphasized the significance of digitization as a core driver of economic growth and trade efficiency.
“Through digitization, we unlock innovation, catalyze industrialization and create seamless access to markets,” he said. The President highlighted Kenya’s growing digital infrastructure, including the Last Mile Connectivity project’s rollout of 100,000 kilometers of fiber optic cable and 25,000 public Wi-Fi hotspots by 2027, alongside 284 digital hubs across TVET institutions.
The President highlighted the digitizing of over 20,000 government services via eCitizen and recent investments by global tech giants like Microsoft and Amazon. The President also noted the recent tax reforms in the Finance Bill 2025, including the proposed halving of the digital assets tax to support youth innovation and compliance.
European Union Ambassador to Kenya, Henriette Geiger, underscored the importance of the EPA in transforming trade relations. “The EU remains Kenya’s largest export partner,” she noted, adding that the forum is a strategic platform to foster inclusive growth, sustainable trade and stronger digital connectivity. Ambassador Geiger announced the launch of EuroCham Kenya, a new chamber of commerce to boost European private sector engagement.
Further boosting confidence in Kenya’s digital economy, European Investment Bank (EIB) Vice President Thomas Östros revealed a new €100 million (14.7 billion Kenyan shillings) financing package, jointly mobilized by EIB Global and Family Bank, to support Small and Medium Enterprises (SMEs), women-led enterprises and youth entrepreneurs. The EIB has already invested over €1.7 billion in Kenya, funding projects like the Mariakani road upgrade, the Olkaria geothermal project and last-mile internet connectivity through providers such as Poa Internet.
The forum also witnessed the first official visit to Kenya by European Union Commissioner for Trade, Mr. Maroš Šefčovič, who co-chaired the inaugural EU-Kenya EPA Ministerial Council. “Our total trade reached €3.4 billion in 2023, a 13% increase from the previous year,” he said. “The EPA ensures predictable trade rules and opens doors for greater market access for Kenyan products.”
Cabinet Secretary Lee Kinyanjui praised the EPA as a “landmark achievement” that will enable duty-free and quota-free access for Kenyan products into the EU, while encouraging diversification beyond traditional agricultural exports. He highlighted Kenya’s attractiveness as a stable investment destination with a projected GDP growth of 5.5% in 2025.
The two-day forum features B2B meetings, business matchmaking and presentations of innovative trade solutions, aligning with the EU’s Global Gateway Strategy to boost infrastructure and digital connectivity globally.
As the curtains opened on this year’s forum, the presence of top government officials, diplomats and private sector leaders signaled a united front in propelling Kenya’s position as a regional hub for digital innovation, green technology and sustainable trade. The PS for Investment Promotion reiterated Kenya’s commitment to engaging European partners in fostering long-term, inclusive investment for mutual prosperity.