Kenya’s trade with Somalia has expanded since Mogadishu joined the East African Community (EAC), officials said, as diaspora capital and regional integration reshape cross-border commerce.
Beatrice Askul, Kenya’s Cabinet Secretary for EAC and Regional Development, said private-sector engagement and the EAC Common Market Protocol are likely to deepen commercial ties.
Speaking at the opening of the second Somalia–Kenya & Diaspora Trade Week at BBS Mall in Eastleigh, Nairobi, Ms Askul said longstanding commercial links continue to anchor trade.“Kenya and Somalia share deep commercial, social and cultural ties, rooted in centuries of trade across the Indian Ocean,” she said on Thursday.“Border communities have fostered exchanges of goods and ideas, with the Somali diaspora playing a vital role in sustaining trade and supplying capital and expertise. These historic connections remain active and are crucial engines of commerce today,” she added.
The forum was attended by Somalia’s Minister of Commerce and Industry, Gamal Mohamed Hassan; Nation Media Group CEO and managing director Geoffrey Odundo; and Somalia’s Ambassador to Kenya, Jabril Abdulle.“This forum comes at a defining moment not only for bilateral relations between Kenya and Somalia but also for our East African Community region. Somalia joined the EAC in 2024, a milestone that has significantly influenced economic relations within the region and deepened ties with Kenya,” Ms Askul said.
She cited improved access to an integrated market, harmonised trade rules and regional value chains as opportunities to scale production, increase exports and attract investment.“The two EAC partner states have had warm trade relations for generations. For example, while Kenya’s exports to Somalia fell by 30 percent between 2013 and 2019, they later recovered, growing by 89.7 percent from 2020 to 2023,” she said.“The growth momentum, however, slowed in 2024, registering a 19 percent drop. Kenya’s imports from Somalia, on the other hand, grew by 66 percent between 2013 and 2019, before dropping by 89 percent in 2023 and then sharply recovering with a 1,000 percent increase in 2024.”Mogadishu bought goods and services worth Ksh5 billion ($38.75 million) from Kenya in the quarter to September 2024, boosting Kenya’s regional exports and offsetting part of a Ksh84 billion ($651 million) decline reported last year.
“This trend demonstrates strong potential for continued growth, supported by the EAC Customs Union’s provisions for free movement of goods.”Transition in motionSomalia’s Minister for Commerce and Industry Gamal Mohamed Hassan said reforms are improving the business climate.“Somalia is advancing from an economy shaped by informality towards one anchored in institutions, credibility and skills,” he said.“This transition is already in motion. It is grounded in reforms that have strengthened market confidence, improved governance and enhanced the private sector’s capacity to operate competitively.”Mr Odundo said the Kenya–Somalia Trade Week, themed “Building Partnerships and Promoting Entrepreneurship Across Borders”, builds on the Invest Somalia Conference and aims to link businesses in both countries.“At Nation Media Group, our mission is to positively influence society. This mission is demonstrated throu
gh our continued commitment to the sectors that impact society,” he said.“The Kenya–Somalia Trade Week is therefore not just another event in our calendar; it underscores our responsibility as the region’s most trusted media organisation to amplify transformative ideas and drive conversations that shape sustainable progress and inclusive growth across the region.”Reflecting on engagement in Somalia over the past two years, Mr Odundo said Somalia’s entry into the EAC in 2023 unlocked new opportunities, though investor caution persists.“However, lingering concerns over the country’s past often cast a shadow over business and investment decisions. Recognising this, we leveraged our convening power to host the first Invest Somalia Conference in April 2024,” he said.
”Regional connectivityLast year’s inaugural Kenya–Somalia Trade Week recorded an average daily attendance of 3,250 visitors, with 76 exhibitors and 15 small and medium-sized enterprises participating. This year’s event has drawn more SMEs, including those from the health and education sectors.“This year’s Somalia–Kenya Trade Week hopes to galvanise cross-border collaboration among entrepreneurs, investors and policymakers, building lasting partnerships that drive innovation and inclusive economic growth across our borders,” Mr Odundo said.
Kenya, the only EAC member sharing a land border with Somalia, remains central to Somalia’s regional connectivity. Planned investments in cross-border corridors, logistics hubs, ports and border infrastructure are expected to lower transport costs and integrate border communities.
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