Kenya Seeks Deeper Economic Ties with Ethiopia to Expand Horn of Africa Access

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Nyakundi Report

Newsroom 1 min read

Kenya is pursuing deeper economic collaboration with Ethiopia to unlock opportunities in the Horn of Africa, following a recent high-level trade and investment forum in Addis Ababa. The two nations reviewed progress on their 2012 Special Status Agreement, which aims to strengthen economic partnerships through trade, investment, infrastructure, and food security initiatives.

Kenyan officials, including Trade and Foreign Affairs Cabinet Secretaries Peter Munya and Monica Juma, emphasized plans to mobilize sector leaders for direct negotiations with Ethiopian counterparts. The agreement’s implementation includes strategies to integrate Ethiopia into the East African Community (EAC), potentially extending regional economic cooperation to Eritrea, Somalia, and Djibouti.

Prime Minister Abiy Ahmed’s meetings with Kenyan delegation leaders highlighted efforts to expand regional market access. Kenya’s private sector seeks to capitalize on Ethiopia’s economic liberalization, which could serve as a gateway to the broader Horn of Africa. The country also expressed concerns over EAC partners diversifying trade routes, particularly Tanzania’s growing ties with Southern African Development Co-operation.

Central Bank Governor Patrick Njoroge participated in discussions with Ethiopian officials to align financial systems for smoother cross-border transactions. Service sectors, including manufacturing and banking, committed to advancing a seven-point agenda to deepen bilateral cooperation.

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