EU Delegation Lauds Kenya’s Economic Reforms, Commits to Enhanced Development Cooperation
Kenya and the European Union (EU) have reaffirmed their commitment to strengthening economic and development cooperation during a high-level engagement between the EU delegation and the State Department for Investment Promotion (SDIP). The engagement brought together officials from the Council Working Party on Humanitarian Aid and Food Aid (COHAFA), the Working Party on Development Cooperation and International Partnerships (CODEV-PI), EU Member States and technical teams from the Kenya Investment Authority and the Ministry of Investments, Trade and Industry. The meeting sought to evaluate Kenya’s investment landscape, review ongoing reforms and explore new avenues for deepening EU–Kenya economic collaboration. Discussions centred on updating the EU delegation on Kenya’s macroeconomic performance, emerging investment opportunities and priority sectors for partnership under the Kenya–EU Economic Partnership Agreement (EPA).
In his remarks, Principal Secretary Abubakar underscored Kenya’s economic resilience and competitiveness, noting that GDP growth is projected at 5.6% in 2025, supported by a stable currency, single-digit inflation and a diversified economic base powered by 92 percent renewable energy. He highlighted ongoing reforms including the digitisation of over 20,000 government services, the rollout of a national e-procurement system, expansion of Special Economic Zones, harmonisation of county licensing procedures and major infrastructure upgrades spanning roads, railways, airports, fibre optic networks and renewable energy as critical enablers of a more efficient investment environment. He also pointed to the establishment of a US$40 million Green Investment Fund aimed at catalysing climate-friendly ventures in electric mobility, sustainable agriculture, waste management and green buildings.
“Kenya remains committed to fostering a robust investment climate. Together with the EU, we can build green value chains, sustainable food systems and a digitally driven economy,” said Principal Secretary Abubakar Hassan Abubakar. He added that the engagement with the EU delegation was timely, coming as Kenya accelerates reforms to enhance competitiveness and attract sustainable investment. “Kenya has undertaken bold economic and governance reforms that continue to restore macroeconomic stability and build investor confidence,” he said.
EU Ambassador to Kenya, H.E. Henriette Geiger, underscored the significance of the EU–Kenya partnership, noting its strategic value in advancing green growth, digitalisation, trade integration and humanitarian-development linkages. “The European Union views Kenya as a critical partner in East Africa. Today’s discussions reaffirm our shared priorities under the Strategic Dialogue and the EPA, particularly in supporting sustainable investment and expanding opportunities for both our regions,” she said.
The discussions highlighted opportunities in water and food security, transport and logistics, manufacturing, digital innovation and the blue economy. Kenya reaffirmed its commitment to leveraging the EPA, which grants duty-free and quota-free access to the EU market, while liberalizing 82% of tariff lines over 25 years. Both sides acknowledged challenges such as high credit costs, infrastructure gaps and climate shocks, but emphasized that these present opportunities for innovative solutions and stronger partnerships.
EU representatives welcomed Kenya’s ongoing efforts to modernise infrastructure, strengthen regulatory frameworks and develop bankable projects across the blue economy, agriculture, manufacturing, renewable energy and digital sectors.
Mr. Fillipo Amato, Head of the Trade Section at the EU Delegation, noted that opportunities under the EPA were becoming increasingly attractive for European investors. “The EPA offers a predictable and mutually beneficial framework and we are encouraged by Kenya’s progress in creating an enabling environment. We look forward to supporting the development of green value chains, digital infrastructure and climate-smart agriculture,” he added.
The meeting concluded with Kenya extending a formal invitation to EU partners to participate in the Kenya International Investment Conference (KIICO), scheduled for March 2026, in Nairobi where deeper sectoral opportunities and investment pipelines will be showcased. “Kenya stands ready to work with the European Union to unlock new frontiers of trade, technology transfer and sustainable industrial growth,” PS Abubakar said.
The engagement signalled a renewed and forward-looking chapter in Kenya–EU relations, with both parties committing to scale up cooperation through the Global Gateway Initiative, Team Europe programmes and the EPA’s long-term development framework.