Kenya has finalised negotiations on a bilateral trade agreement with China, marking a major step in strengthening economic ties between the two countries.
President William Ruto announced the development on Wednesday, two months after the government revealed a preliminary agreement aimed at expanding Kenyan exports to the Asian economic powerhouse.
Under the deal, about 98 percent of Kenyan exports will gain duty-free access to the Chinese market, offering new opportunities for businesses in East Africa’s largest economy.
“We have this week finalised negotiations with the Government of the People’s Republic of China on a bilateral trade agreement,” Ruto said while addressing an investment conference focused on attracting international investors.
Kenya has increasingly deepened its economic cooperation with China in recent years. Ruto visited Beijing last year on a state visit where several financing and development cooperation agreements were signed.
Despite strong trade relations, bilateral commerce between the two nations has long been heavily tilted in favour of China, with Kenya importing far more goods than it exports.
The new agreement is expected to help Nairobi reduce the trade imbalance by boosting Kenyan exports to the vast Chinese market.
At the same time, Kenya remains a key partner of the United States and is currently negotiating a separate bilateral trade deal with Washington.
Ruto has defended his government’s closer engagement with China after criticism from some American officials, arguing that Kenya must expand its export markets to strengthen its economy.
“We must sell more goods to China to bridge the trade gap,” the president said.
Ruto also noted that Kenya’s economy had remained resilient over the past year. He said inflation and the Kenyan shilling had remained stable despite global economic pressures.
According to the president, foreign direct investment into Kenya surpassed $2 billion for the first time in 2025, representing an increase of more than 15 percent compared with the previous year.
The government hopes the new trade agreement with China will further boost investment and economic growth in the coming years.
