Kenya-UAE ties reshaping region’s economic future

But there is another story unfolding, one that deserves attention and, indeed, admiration. It is the story of how Kenya is positioning itself as the undisputed gateway to East Africa, and how its deepening partnership with the United Arab Emirates is accelerating this transformation in ways that will benefit every Kenyan.

You might wonder how a writer with such an Ethiopian name feels qualified to write about Kenya with such familiarity. I am indeed of Ethiopian descent, but I consider Kenya my second home. I have lived here for several years on and off, and am often far more at home in Nairobi than in Addis. From this vantage point as someone who has witnessed East Africa's development from both sides of the border, I can appreciate Kenya's remarkable trajectory with both regional insight and the analytical distance that comes from being, in many ways, an informed outsider.

When most people think of the UAE in relation to Kenya, minds drift to familiar narratives. There are the thousands of domestic workers who have found opportunity there, sending remittances that support families back home. There are the heavily Instagrammed getaways to Dubai that have become the aspiration of Kenya's middle class. 

SURGING TRADE

These stories matter; they represent the human connections that bind these nations. The UAE is indeed the fifth-largest source of remittances to Kenya, with estimates suggesting between 30,000 and 100,000 Kenyans working there, contributing significantly to the country's foreign exchange earnings.

But what may have escaped collective attention is the remarkable surge in trade between these countries that signals something far more profound than tourism and labour migration. This is about Kenya's emergence as a regional economic powerhouse, and perhaps more significantly, the UAE's recognition of Kenya's strategic importance in unlocking the vast potential of the African continent.

The numbers tell a compelling story. Non-oil trade between Kenya and the UAE reached $3.1 billion (Sh400 billion) in 2023 — a leap of 26.4 per cent from the previous year. This is not merely statistical growth; it represents a fundamental shift in how the world sees Kenya.

When global investors and trading partners increase their engagement by more than a quarter in a single year, they are betting on Kenya's future. They are recognising what those of us who know the region have always understood: that Kenya is the natural hub for East African commerce, innovation and growth.

Writing this as an Ethiopian who has adopted Kenya as a second home might seem unpatriotic to some, but the evidence is compelling. Kenya's strategic advantages — its location, infrastructure, educated workforce and democratic institutions — make it the ideal partner for any nation seeking to engage meaningfully with the African continent. Ethiopia beats Kenya hands down in other categories, but, story for another day.

This momentum reached a historic milestone in January, when President William Ruto and UAE President Sheikh Mohamed bin Zayed Al Nahyan signed the landmark Comprehensive Economic Partnership Agreement (Cepa).

This is not just another trade deal filed away in government archives. It is a strategic alliance that will open markets, reduce trade barriers and accelerate investment in the very sectors that will define Kenya's economic future: ICT, tourism, renewable energy, banking and infrastructure,” Ruto declared during the signing ceremony in Abu Dhabi.

"The Cepa will unlock opportunities for our businesses and create jobs for our youth, while positioning Kenya as the gateway to East Africa."

These are not empty diplomatic pleasantries. They reflect a clear understanding of what this partnership means for Kenya’s national development trajectory. 

THE STRATEGIC ADVANTAGE

Consider what Kenya offers the UAE: a strategic foothold in Africa, with access to a growing consumer market and established regional trade routes. Kenya's location, infrastructure, educated workforce and democratic institutions make it the ideal partner for any nation seeking to engage meaningfully with the African continent. The UAE recognises this, and their investment reflects their confidence in Kenya's potential.

In return, UAE investors bring world-class logistics capabilities, sophisticated financing mechanisms and global connectivity that can transform how Kenyan businesses access international markets.

This is not a one-sided relationship, where Kenya merely exports raw materials and imports finished goods. This is a partnership that enhances the country's capacity to add value to its products and services, to compete globally and to create the kind of high-quality jobs Kenya's young people deserve.

The foundation of Kenya's economy remains strong. Agriculture contributes about 25 per cent of GDP, while the service industry accounts for 53.6 per cent. These sectors are not being displaced by the growing partnership with the UAE; they are being enhanced and expanded. Analysts are confident that the Cepa will boost exports of Kenyan goods, such as avocados, flowers, coffee and textiles, while attracting UAE-backed investments in tourism, fintech and clean energy.

This is about building on Kenya's strengths while diversifying its economic base. Kenyan farmers will find new markets for their produce. The country's technology entrepreneurs will access new sources of capital and expertise. Kenya's tourism industry will benefit from enhanced connectivity and investment. The financial sector will deepen its integration with global markets.

REGIONAL LEADERSHIP

But the significance of this partnership extends beyond Kenya's borders. As the country's GDP grows year on year — momentum that is expected to accelerate further in 2025 — Kenya is not just building its own prosperity. It is cementing its role as a regional trade and investment hub, encouraging deeper relationships between the entire East African region and the Gulf Cooperation Council.

This represents the Kenya that many of us across the region have long envisioned: a nation that serves as a bridge between Africa and the world. A country that creates opportunities not just for its own people but for neighbours across the region.

This isn’t to negate the genuine political challenges Kenya faces, but when international businesses establish their African headquarters in Nairobi, when global investors choose Kenya as their entry point to the continent, when Kenyan ports and airports become the preferred gateways for regional commerce, the country is fulfilling its destiny as East Africa's economic leader.

The UAE partnership is accelerating this vision. It is providing Kenya with the capital, expertise and global connections needed to build world-class infrastructure, to develop cutting-edge industries, and to create an environment where Kenyan businesses can compete with the best in the world

LOOKING FORWARD

So the next time conversation turns to Dubai holidays or friends working in the UAE, it's worth remembering these statistics about trade and partnership. Behind every number is a Kenyan business finding new markets, a Kenyan worker gaining new skills, a Kenyan family benefiting from new opportunities. East Africa and the UAE are, indeed, reinventing their relationship, and the benefits will be wide-ranging and transformative.

This is not just about economic growth measured in percentages and billions of dollars. This is about Kenya taking its rightful place as a leader in African development, as a nation that creates opportunities for its people and serves as a beacon of progress for the entire region.

The partnership with the UAE is helping Kenya write that story, and every Kenyan — indeed, every East African — should take pride in the chapters being created.

The future being built is one where young Kenyans do not have to leave home to find opportunity, where Kenyan businesses can compete globally from Nairobi, where farmers and entrepreneurs have access to the best markets and the most sophisticated support systems in the world.

This is the Kenya that the UAE sees when they invest $3.1 billion (Sh400 billion) in trade. This is the Kenya that is emerging, and it is a future worth celebrating — not just for Kenyans but also for all of us who call East Africa home.