•The Netherlands remains among Kenya’s top trade and investment partners.
•Border facilities in Namanga, Busia and Moyale, as well as Lake Victoria trade from Kisumu and smaller ports are testimony of Kenya’s role as the regional hub.
Image: Maarten Brouwer
Kenya, is one of the fastest-growing economies in Africa and the largest economy in East Africa.
A hub into Africa and a hub to the world. The port of Mombasa is the most visible hinge, a well-functioning port that has throughout history been able to attract foreign investments with increased trade activities as a result.
The Kenyatta International Airport is another important hinge to connect Kenya to the world. Recent investments in a new deep sea port in Lamu creates another linking pin, which is ready for future expansions.
Border facilities in Namanga, Busia and Moyale, as well as Lake Victoria trade from Kisumu and smaller ports, are testimony of Kenya’s role as the regional hub.
The Netherlands remains among Kenya’s top trade and investment partners.
Since independence, the Netherlands has been among the top five global destinations of Kenyan goods and the largest in Europe.
Kenyan exports to the Netherlands have more than doubled over the last 10 years to stand at Sh69.7 bn (561 million euros) in 2022.
During the first 6 months of this year, Kenyan exports to the Netherlands are at nearly Sh40 bn, a sign of continuing growth.
At the same time, the Netherlands is among the top five sources of Foreign Direct Investment (FDI) to Kenya. So, we can easily say that Kenya and the Netherlands enjoy strong trade relations with agriculture, and specifically horticulture, as a key driver.
Behind this success story is a steadfast Dutch partnership to address various business climate challenges in Kenya.
TradeMark Africa, International Finance Corporation (IFC), United Nations Conference on Trade and Development (UNCTAD) and International Development Law Organization (IDLO) have been important partners in this endeavor, some of whom we work with in close collaboration with the EU and other major trading partners of Kenya.
In the recently launched Multi-Annual Country Strategy 2023-2026, the Embassy of the Kingdom of the Netherlands to Kenya envisions to further strengthen the economic cooperation between Kenya and the Netherlands with the aim to translate this into sustainable inclusive economic growth.
The further development of sea, rail and road infrastructure is critical to Kenya’s position on the African continent in global value chains, as logistics are a key driver for trade.
This position is crucial for Kenya as the African Continental Free Trade Area (AFCFTA) is gaining traction.
At the same time, the Netherlands is a critical gateway into Europe. It harbors the largest port in Europe, the Port of Rotterdam, and is worldwide the largest port for reefer containers.
The logistics sector in the Netherlands is diverse and driven by innovation.
Through its large infrastructure network by road, rail and water the Netherlands has become an expert in multi-modal transport systems.
This is understood well by the private sector: the logistical capacity in the Netherlands is largely driven by the private sector, facilitated by public investments. And we think this could also be the way forward in Kenya.
Sea freight is still an underserved logistical chain in Kenya, but has huge potential.
More specifically, the Embassy is championing the development of a cool logistics corridor connecting Kenya and the Netherlands through sea freight.
Not in the last place to meet international targets on carbon reduction. After all, carbon emissions are up to 80% lower for sea freight compared to airfreight.
Therefore, this week the Embassy of the Kingdom of the Netherlands to Kenya has the honour of welcoming 17 Dutch companies, that will explore various partnership and investment opportunities in the logistics sector.
Logistics is key for every economic hub and Kenya is such a hub for East Africa, just as the Netherlands is for Europe.
Of all goods in and out Europe from or to Kenya, by far the largest proportion goes to the Netherlands.
Both countries can learn a lot from each other and this mission will open up opportunities for Dutch companies to add their value to the ever-growing role of Kenya as a trading hub.
Dutch and other European consumers have come to appreciate the products Kenya can deliver and they want more.
That calls for investments in Kenya’s logistical capacity, its production capacity and its knowledge base.
Employment opportunities will benefit from such engagements. Dutch enterprises are looking to Kenya as an entry point to African markets and as a market in its own right.
A trade mission on health that was organized last year showed that both countries can benefit from each other. The mission was an immediate success.
This mission is anticipating a similar success. I hope this week will lead to inclusive sustainable solutions, which Dutch companies are known for.
That would be another step forward in the ever strengthening economic cooperation between Kenya and the Netherlands.