Kenya and Somalia have signalled a renewed push to deepen their economic partnership beyond the traditional exchange of goods.
Policymakers and businesses from both countries gathered in Nairobi for the second Somalia–Kenya & Diaspora Trade Week.
Cabinet Secretary for East African Community (EAC) and Regional Development, Beatrice Askul, said regional integration and diaspora capital were increasingly shaping trade flows between the two neighbours.
She noted that Somalia’s recent entry into the East African Community had created new momentum for harmonised trade policies and regional value chains.
“Kenya and Somalia share deep commercial, social and cultural ties, rooted in centuries of trade across the Indian Ocean,” Askul said, adding that structured integration under the EAC framework could unlock more balanced and diversified growth.
Somalia’s Minister of Commerce and Industry, Gamal Mohamed Hassan, said reforms aimed at improving the business climate and attracting private investment.
Delegates pointed to a steady rise in bilateral trade in recent years, with Kenya’s exports to Somalia expanding significantly between 2020 and 2023 and Somali demand for Kenyan goods running into billions of shillings in recent quarters.
However, this year’s Trade Week marked a notable departure from previous editions by broadening its scope to include services such as healthcare, education and technology — signalling recognition that sustainable economic ties require more than merchandise trade.
Among the exhibitors was The Nairobi West Hospital, which used the platform to spotlight the role of healthcare in supporting commerce. Susan Wakaruigi, the hospital’s Head of Nursing, said access to reliable health services is critical to workforce productivity and business resilience.
“Healthy communities are productive communities. When workers and entrepreneurs have access to reliable health services, absenteeism falls, and economic participation rises,” she said, arguing that investment in health infrastructure should be viewed as part of broader economic development.
Despite optimism, participants acknowledged persistent hurdles. Traders cited high logistics costs, supply chain inefficiencies and regulatory bottlenecks as barriers that continue to dampen cross-border business, particularly for small and medium-sized enterprises.
Held on February 12–13 at BBS Mall in Eastleigh, the 2026 forum brought together entrepreneurs, investors and government officials under the theme “Building Partnerships and Promoting Entrepreneurship Across Borders,” reflecting a broader shift toward services, investment and social-sector collaboration.
Some exporters called for faster customs clearance processes and the removal of non-tariff barriers to ease movement of goods and services. Concerns over risk perceptions linked to operating in Somalia were also raised, though officials insisted that reforms were steadily improving the investment climate.
Even so, the overall tone of the forum was forward-looking. Participants discussed joint ventures, cross-border logistics hubs and digital marketplaces as avenues for scaling trade.
The increased presence of service providers and diaspora investors suggested a growing appetite to move the relationship beyond transactional trade toward integrated economic cooperation.
Organisers said this year’s edition attracted more SMEs and service-sector players than before, reflecting broader interest in collaborative projects that link commerce with social development.