Kenya: UK, Kenya Begin Talks On Landmark Digital Trade Deal to Boost E-Commerce, Tech Investment

Nairobi — The United Kingdom and Kenya have begun negotiations on a landmark Digital Trade Agreement aimed at expanding cross-border digital commerce, reducing barriers for businesses and cementing Kenya's position as Africa's "Silicon Savannah," British High Commissioner to Kenya Matt Baugh has revealed.

Speaking during an interview on The Capital in the Morning radio show, Baugh said the proposed agreement represents the next phase of the UK-Kenya Strategic Partnership signed in July 2025, reflecting a shift from traditional trade to a technology-driven economic relationship.

"We're beginning negotiations on a Digital Trade Agreement that will make it easier for businesses to operate across both markets and further strengthen Kenya's position as the Silicon Savannah," Baugh said.

The proposed pact is expected to simplify digital trade, support innovation and improve market access for businesses operating in both countries, while building on the broader Strategic Partnership between President William Ruto and UK Prime Minister Keir Starmer.

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According to the High Commissioner, the partnership has already delivered significant economic gains in its first year, with bilateral trade surpassing Sh340 billion (£2 billion) for the first time.

British companies now employ approximately 250,000 Kenyans, while ongoing projects are expected to create more than 100,000 direct and indirect jobs.

Baugh said digital transformation has become one of the defining pillars of the relationship, alongside trade, infrastructure, security and climate action.

As part of that effort, the UK is supporting digital literacy and digital access programmes expected to benefit more than 200,000 people and businesses, with particular emphasis on women-led enterprises and persons with disabilities.

The High Commissioner said the broader economic partnership is already delivering major investments across the country.

Among the flagship initiatives is a first-of-its-kind infrastructure investment fund, recently launched at the Nairobi Securities Exchange, to finance roads, energy, and digital infrastructure.

He also highlighted the Nairobi Railway City project, modelled on the regeneration of London's King's Cross district, which is backed by approximately £150 million and is expected to create around 10,000 jobs.

Baugh also pointed to the Economic Partnership Agreement between Kenya and the UK, which provides Kenyan exporters with duty-free and quota-free access to British markets for products including tea, coffee and horticulture.

He cited Spring Valley Coffee's recognition as Best New Coffee House at the London Coffee Awards as evidence that Kenyan brands are increasingly finding success in international markets.

"For SMEs, success comes from combining a quality product with an authentic brand story," he said.

Beyond economic cooperation, Baugh said the UK and Kenya continue to strengthen collaboration on regional security, building on more than two decades of partnership in counterterrorism operations in Somalia and peace efforts in Sudan.

He described Kenya as possessing one of the region's strongest security architectures and said cooperation is expanding into emerging areas such as artificial intelligence safety, cybersecurity and tackling organised immigration crime.

On climate, Baugh said Britain is helping Kenya respond to the growing impacts of droughts and floods by supporting 8,500 vulnerable households and mobilising £200 million in climate finance.

He added that the UK continues to invest in Kenya's renewable energy sector, including solar power projects in Malindi and geothermal energy development in Menengai, complementing a national electricity grid that is already about 90 per cent renewable.

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Education remains another cornerstone of the partnership, with more than 700 Kenyan beneficiaries of UK scholarship programmes now spread across all 47 counties.

Leading British universities, including University College London, Oxford, Cambridge and King's College Londo, are also expanding research collaborations with Kenyan institutions, while discussions are underway to establish links between the Judge Business School at the University of Cambridge and Kenyan business schools.

Baugh said the long-term vision is to position the UK as Kenya's most dependable economic partner by doubling bilateral trade over the next five years, accelerating digital transformation and significantly increasing support for climate resilience.

"Our goal is to be a dependable and predictable partner that delivers on Kenya's priorities," he said.