Kenya has a free enterprise economy and a well-developed industrial base. The population grew from 28.7 million in 1999 to 57.5 million in 2025. Kenya is also benefiting from digital development initiatives and a young workforce, both of which support productivity and business growth.
The Kenyan economy continues to show steady growth. Gross Domestic Product grew by 5.3% in 2025, up from 4.7% in 2024.
This growth is supported by:
Kenya holds a central position within the East African Community, representing roughly 40% of the bloc’s total population. This scale supports strong domestic demand and reinforces Kenya’s role as a regional entry point for business and investment.
The country’s location enables direct trade links with the common market for Eastern and Southern Africa, wider African markets, Asia, the Middle East, and Europe. Preferential access to selected overseas markets, including the United States, Canada, and Australia, has been further expanded through the African Growth and Opportunity Act, a U.S. law enacted in 2000.
Kenya's business landscape is buttressed by membership in various commercial and economic organisations, fostering a secure and conducive environment for business activities:
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International Affiliations and Trade Agreements |
Description |
|
World Trade Organisation (WTO) |
Membership in the global trade body that promotes international trade and economic cooperation. |
|
United Nations Conference on Trade and Development (UNCTAD) |
Participation in UNCTAD's initiatives for sustainable development and equitable international trade. |
|
African, Caribbean, and Pacific-European Union (ACP/EU) Cotonou Agreement |
Engagement in trade and development cooperation between ACP countries and the EU. |
|
International Monetary Fund (IMF) |
Membership in the IMF fosters global monetary cooperation and financial stability. |
|
World Bank |
Collaboration with the World Bank to support development projects and poverty reduction in Kenya. |
|
Multilateral Investment Guarantee Agency |
Association with MIGA, a World Bank agency that promotes foreign direct investment in developing countries. |
|
African Trade Insurance Agency |
Partnership with ATI to provide insurance and risk management solutions for trade and investment. |
|
Bilateral Agreements |
Description |
|
Double Taxation Agreement with Germany (1977) |
A bilateral treaty to avoid double taxation and prevent tax evasion on income and capital between Kenya and Germany. |
|
Treaty On The Encouragement And Reciprocal Protection Of Investments (2000) |
Bilateral agreement to promote and protect investments between Kenya and other countries. |
Business meetings are usually arranged by appointment. Business culture is often formal and hierarchical, with senior individuals typically acknowledged first using appropriate titles. Practices may vary depending on the organisation and sector.
Business hours are generally Monday to Friday, from 8 am to 5 pm. Working hours may vary by industry or company.
KEBS is responsible for establishing, supervising, and harmonising quality standards for both domestic and international goods and services manufactured in Kenya. It also regulates and ensures quality compliance for foreign goods entering the country. KEBS aligns with international standardisation practices while safeguarding product integrity in the Kenyan market.
Website: www.kebs.org
KEPHIS is entrusted with enforcing regulatory procedures related to phytosanitary requirements for import and export services concerning agricultural produce. It acts as a reliable regulatory body to ensure the quality of farm inputs and outputs.
Website: https://www.kephis.go.ke
CAK oversees the licensing and regulation of telecommunications, radio communications, and postal services in Kenya. It provides an enabling environment for potential investors in these sectors.
Website: https://www.ca.go.ke
The Government of Kenya recognises the need for efficient services to support business establishment and growth. In response, the Ministry of Investments, Trade and Industry introduced the Karibu Business Support Centre (KBSC).
KBSCs were established to recognise the role that business enterprises play in economic growth, innovation, and employment. Businesses may face challenges when setting up operations in Kenya or expanding their activities, which these centres are intended to address.
Website: https://karibubusiness.go.ke
HCDA offers guidance to growers, exporters, and processors to enhance the production of high-quality horticultural produce for both local consumption and export. It also holds the responsibility of licensing horticultural exporters.
Website: https://www.afa.go.ke/home-horticultural-crops-directorate
KTB is tasked with promoting Kenya as a premier tourist destination, highlighting its abundant natural attractions, cultural diversity, and recreational activities. Kenya's appeal spans from savannah landscapes teeming with wildlife to equatorial forests and snow-capped mountains.
Website:https://ktb.go.ke
KIA serves as a comprehensive platform for prospective investors looking to invest in Kenya. It expedites the approval and licensing processes for new investment projects and conducts investment promotion activities on both local and global scales. The KIA's holistic approach streamlines the investment process and provides valuable project proposals and opportunities.
Website: www.investmentkenya.com
The Chamber acts as a lobbying body, advising both the government and businesses on local and international trade trends. It stands as a voluntary yet influential platform for the business community, offering insights and collaborations across the nation.
Website: https://www.kenyachamber.or.ke
FKE, established in 1959, champions the interests of employers and investors across various sectors. It promotes competitive local manufacturing within a liberalised market environment.
Website: www.fke-kenya.org
FPEAK is dedicated to elevating the horticultural sector through market intelligence, export promotion, technical support, and training. It collaborates with relevant bodies to ensure the quality of fresh produce in both local and international markets.
Website: www.africaonline.co.ke/fpeak
This organisation ensures responsible and environmentally safe production of cut flowers and related products, enhancing Kenya's competitiveness in both local and global markets. Stricter quality standards and regular audits are key components of its mission.
Website: www.kenyaflowers.co.ke
KIFWA upholds fairness and efficiency in freight management. Its members play a crucial role in facilitating import and export logistics, contributing to the movement of goods within and beyond Kenyan markets.
Website: www.kifwa.co.ke
Email ID: info@kifwa.co.ke
The Kenya Private Sector Alliance (KEPSA) is the apex body for the private sector in Kenya, bringing together business associations, chambers of commerce, professional bodies, and member organisations from across the economy.
KEPSA represents more than 2 million businesses and serves as the national focal point for the East Africa Business Council. It also hosts the Kenya Chapter of the International Chamber of Commerce, linking Kenyan businesses to international markets.
Website: https://www.kepsa.or.ke
Established in 1959, this organisation represents manufacturers in Kenya, driving industrialisation through competitive local manufacturing within a liberalised market.
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