KNCCI President Dr. Erick Rutto’s remarks were delivered on his behalf by National Director and Chair Economic Diplomacy Committee Cynthia Nyawira, highlighted the Chamber’s active role in Kenya’s economic diplomacy.

The conference drew an impressive line-up of key stakeholders, underscoring the significance of the Kenya–China trade agenda including the Kenya Investment Authority and Lucy Muchoki the Chair, KNCCI Programmes and Partnerships Committee & CEO, Kenya Agribusiness and Agroindustry Alliance. The Changsha delegation included Li Weiqun Vice Chairman, Standing Committee of Changsha Municipal People’s Congress, Yang Zhiren — Deputy Director, Changsha Municipal Bureau of Commerce and China Business Representatives in Kenya including from , Zoomlion Overseas Company, eWaka Mobility, KILIMALL Kenya, Rideence Africa Limited and Executive Vice President, Hunan Association in Kenya Xiao Huizhong.

A central theme of the conference was the urgent need to address Kenya’s trade imbalance with China. Kenya’s trade deficit currently stands at approximately KES 654 billion. However, China’s decision to grant duty-free access to 98.2% of Kenyan exports was lauded as a transformative opportunity with early results are already showing tea and coffee exports to China have soared.

KNCCI Chair Programmes and Partnerships Ms. Lucy Muchoki highlighted the growing role of agriculture in Kenya’s exports to China, pointing to the strong potential for agribusiness expansion. She underscored the need to deliberately involve more youth and women in this growth, a call to action that aligns with KNCCI’s broader agenda of inclusive economic participation.

The Changsha delegation presented their city as a strategic distribution hub for goods entering China, with the capacity to channel products to markets across the entire country. This positions Changsha as a natural and efficient partner for Kenyan exporters seeking nationwide reach in China.

Presentations from Changsha’s industry leaders also spotlighted significant opportunities in biomedical devices, heavy machinery, new energy, and electric mobility sectors where Chinese enterprises are actively seeking African partners. KNCCI’s role in orienting and facilitating incoming Chinese investors was formally acknowledged and welcomed.

In remarks delivered by National Director Ms. Cynthia Nyawira, KNCCI outlined Kenya’s compelling investment proposition a dynamic economy that grew 4.6% in 2025, a youthful and entrepreneurial workforce, world-class digital infrastructure, and preferential access to a regional market of over 300 million consumers through the EAC, COMESA, and AfCFTA.

KNCCI also highlighted gains from KNCCI’s first overseas office in Changsha, established in December 2023 and which continues to serve as an anchor for Kenya–China business engagement, having already facilitated missions involving over 200 Kenyan business leaders.

Overall members in agribusiness, manufacturing, ICT, renewable energy, electric mobility, and biomedical sectors stand to benefit directly from the partnerships being developed through this forum.

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Members of the Kenya National Chamber of Commerce and Industry (KNCCI) across all business sectors will soon benefit from enhanced long-term financial planning tools following a strategic partnership meeting. While the collaboration places a strong initial focus on the Women in Business (WiB) framework, the initiative is set to expand across the Chamber’s entire entrepreneurial membership base.

The foundational discussions, aimed at formalizing a partnership and co-creating a joint implementation program, were led by KNCCI CEO KK Mutai, KNCCI National Director & WIB Chair Zainab Mohamed and Ken Mwenda alongside KNEST representatives Lucy Kamau and Morris Andande. The upcoming joint program is designed to integrate pension education and KNEST’s flexible, mobile-first savings solutions directly into KNCCI’s national program calendar and county outreach forums.

By establishing this structured framework, KNCCI and KNEST seek to equip entrepreneurs with the necessary resources to build sustainable financial resilience. The joint initiative will empower business owners to secure their future, bridging the gap in retirement preparedness and fostering long-term financial security across Kenya’s diverse entrepreneurial ecosystem.

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15^th May 2026, Nairobi, Kenya. The Kenya National Chamber of Commerce and Industry (KNCCI) expresses concern over the latest fuel price increase announced by EPRA for the period 15  May to 14 June 2026 pricing cycle.

In Nairobi, Super Petrol has increased by KSh 16.65 to KSh 214.25 per litre, while Diesel has risen sharply by KSh 46.29 to KSh 242.92 per litre. Kerosene remains unchanged at KSh 152.78 per litre.

The sharp rise in diesel is particularly concerning because diesel is the backbone of transport, agriculture, manufacturing, logistics, construction, and general trade. Any increase in diesel prices quickly feeds into the cost of moving goods, producing essential commodities, and delivering services across the economy.

KNCCI acknowledges that current fuel price pressures are partly driven by global oil market disruptions linked to geopolitical tensions in the Middle East. However, the April–May comparison shows that while global crude oil prices increased by about 10.7%, Kenya’s diesel price rose by 23.5% over the same period. This points to the continued role of domestic cost buildup, including taxes, levies, exchange-rate effects, margins and landed product costs.

April–May Fuel Price Movement

Since January, Petrol has increased by 17.4%, while Diesel has increased by 42.5%. This confirms that the current fuel shock is diesel-led and will have direct consequences for the cost of living, cost of production, and competitiveness of Kenyan businesses.

KNCCI notes that Kenya remains a relatively high-cost fuel market compared to regional peers such as Uganda and Tanzania. This weakens Kenya’s competitiveness in logistics, manufacturing, cross-border trade, and investment attraction.

Regional Fuel Price Comparison

Regional prices show that Kenya remains one of the higher-cost fuel markets among selected East and Horn of Africa peers.

The comparison shows that Kenya’s diesel price is materially higher than key regional competitors, including Uganda and Tanzania.

The global crude oil shock is real: crude prices are now roughly 41%–51% above pre-conflict levels. However, the April–May comparison shows that while crude oil rose by about 6.8% between USD 100.19 and USD 107.00, Kenya’s diesel price rose by 23.5% over the same pricing cycle. This reinforces KNCCI’s position that domestic cost build-up—including taxes, levies, landed product costs, exchange rate effects and margins—continues to amplify the impact on businesses and households.

The latest increase is expected to:

• Raise transport and logistics costs by 10%–20%;
• Push up food and consumer goods prices by 3%–7%;
• Increase manufacturing and farm distribution costs by 5%–12%;
• Squeeze MSME cashflows and profit margins by 5%–15%;
• Weaken Kenya’s regional trade competitiveness, especially against lower-cost fuel markets.

KNCCI Recommendations

• KNCCI calls on Government to urgently adopt practical cushioning measures:
• Fuel taxation: Review and rationalize fuel taxes and levies, especially on diesel.
• Stabilization: Strengthen transparent fuel price stabilization mechanisms.
• Price transparency: Publish a clear fuel price build-up in every review cycle.
• MSME support: Provide targeted relief for fuel-intensive MSMEs.
• Logistics efficiency: Reduce port, storage, transport, and distribution inefficiencies.
• Competitiveness: Protect Kenya’s position as a regional trade and logistics hub.
• Diversification to African Producers: Kenya must pivot its supply markets toward African oil-producing nations to leverage shorter shipping routes and continental trade agreements.
• Regional Refining Capacity: The Chamber lauds the recent announcement by the Dangote Group regarding new refinery investments. We urge the government to fast-track plans for a modern local refinery to reduce our total reliance on expensive refined imports.

The current fuel increase is not just an energy issue; it is an economy-wide shock. KNCCI urges Government to move with urgency to cushion households, protect businesses, and reduce domestic cost drivers that amplify global fuel shocks.

KNCCI remains committed to working with Government, EPRA, National Treasury, transporters, manufacturers, traders, and other stakeholders to develop practical solutions that protect livelihoods, sustain enterprise growth, and strengthen Kenya’s economic resilience.

ENDS

By Dr Erick Rutto, Chamber President

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The discussions centered on creating a structured framework for inter-chamber collaboration. The MCCCI, established as a partnership of enterprises and associations across all sectors of the Malawian economy, plays a pivotal role in representing the private sector in Lilongwe. By aligning with KNCCI, both organizations aim to bridge the information gap for SMEs and large-scale investors alike.

Bilateral trade between Kenya and Malawi has shown consistent growth, with the total value reaching approximately $74 million (Ksh 9.7 billion) annually.

• Kenya’s Exports to Malawi: Valued at approximately $56.2 million, led by packaged medicaments ($12M), sanitary products ($8.56M), and soaps.

• Malawi’s Exports to Kenya: Valued at approximately $17.9 million, dominated by soybean meal ($7.21M), groundnuts ($5.83M), and maize seeds.

Vice President Ramadhan Mustafa highlighted that the “DARAJA” pathway, a strategy of moving from convention to structured corridors, is essential for the Kenya-Malawi partnership. Beyond traditional agriculture, the chambers are eyeing:

• Mining: Unlocking Malawi’s promising limestone and coal resources through Kenyan industrial expertise.

• Manufacturing: Encouraging Kenyan firms, which already operate in Malawi’s food processing and IT sectors, to expand their footprint.

• Value Addition: Collaborative ventures where raw materials from Malawi’s SME base undergo processing in Kenya’s advanced manufacturing zones for re-export.

The meeting concluded with a firm commitment to establishing a joint business desk and organizing reciprocal trade missions. As both nations leverage the COMTRADE framework and regional trade blocs, the goal remains clear: to transform bilateral intent into bankable joint ventures that benefit the youth and business communities of both Nairobi and Lilongwe.

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The President of the Departmental Council of Mayotte H.E Ben Issa Ousseni and the Mayor of Mamoudzou Ambdilwahedou Soumaïla have signaled a significant pivot toward Kenya, favoring the nation over traditional trading partners like Madagascar and Mozambique. This preference is rooted in:

• Strong Cultural and Educational Ties: Many Mahorais youth are currently pursuing their studies in Kenya, creating a foundation of mutual understanding.
• Infrastructure Synergy: Kenya has been heavily involved in shipbuilding efforts to assist Mayotte’s recovery following recent cyclones.
• Connectivity: The two territories are linked by four to five direct flights weekly between Nairobi and Dzaoudzi, a weekly maritime service between Mombasa and Longoni, and a submarine cable.
• Policy Shifts: The repeal of regulations forbidding trade with Africa has cleared the path for Kenya to become a primary partner.

H.E Ben Issa Ousseni particularly highlighted the agricultural sector stands as the most “immediate and bankable” opportunity for both nations.

• Kenya as the Producer: Kenyan exporters are positioned to supply a vast range of goods, including cassava and bananas.
• The Meat Trade: While Mayotte currently works with Madagascar for meat, Kenya is now positioned to supply halal-certified meat and poultry.
• Contract Farming & Value Addition: A unique model is proposed where Kenya is contracted to produce agricultural goods while Mayotte focuses on value-adding processes.
• Market Access: Under the Kenya–EU Economic Partnership Agreement, Kenyan goods enjoy duty-free and quota-free access to Mayotte, which serves as a strategic gateway into the wider European single market.

Beyond goods he said Mayotte has made a specific call for labor migration, particularly seeking skilled professionals in the c. As Mayotte modernizes its public infrastructure including a multi-billion-euro pipeline for new hospitals and schools Kenyan expertise is viewed as a vital component of this growth.

To ensure these opportunities transition from dialogue to reality, Vice President Mustafa Ramadhan called for:

Permanent Business Desk: A joint desk with the Mayotte Chamber (CCIM) to host importer/exporter rosters and provide a single channel for trade enquiries and ensure importers and exporters get standardization Support. This is special important with focus on helping Kenyan firms meet strict EU phytosanitary standards to ensure seamless entry into the Mahorais market.

Further, Mayotte has called on Kenya to play a part in regional integration: Kenya has been urged to participate in the Interreg VI Mozambique Channel Operational Programme, further embedding the country into the Indian Ocean’s cooperation architecture.

“As Mayotte embarks on a massive reconstruction phase, Kenya is no longer just a neighbor, but a primary partner in building a resilient, circular, and highly integrated regional economy,” H.E Ben Issa Ousseni said

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Dr. Rutto highlighted Kenya’s strengths as a regional commercial and logistics hub with strong capabilities in fintech, ICT, agribusiness, renewable energy, logistics and aviation, while positioning Namibia as a strategic investment destination with competitive advantages in mining, energy, tourism, fisheries, livestock and logistics through the Port of Walvis Bay.

The Chamber President noted that current trade volumes between Kenya and Namibia remain below their true economic potential, but emphasized that this presents a major opportunity for growth under the AfCFTA framework. He cited Kenyan enterprises such as Kenya Airways, Safaricom, Equity Group Holdings and Centum Investment Company as examples of Kenyan businesses increasingly expanding their footprint across the continent.

Dr. Rutto further identified key areas for bilateral collaboration including agribusiness, food processing, renewable energy, digital trade, tourism, logistics, mining support services and SME partnerships, emphasizing that Kenya offers Namibia access into East Africa while Namibia provides Kenya with a strategic gateway into Southern Africa and the wider SADC market.

He concluded by urging African private sector leaders to transform relationships into transactions, discussions into investments and opportunities into sustainable enterprises, noting that “the future of Africa will be built not through aid, but through African trade, African investment and African enterprise.”

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Britam PLC, a Platinum Member of Kenya National Chamber of Commerce and Industry, convened the Britam Biashara Network this morning ,an initiative focused on unlocking business potential for SMEs. The forum brought together enterprises from diverse sectors.

The keynote address was delivered by Wandia Gichuru, Co-Founder and CEO of Vivo Fashion Group, who shared insights on her entrepreneurial journey since founding the business in 2011, now approaching its 15-year milestone.

KNCCI was represented by National Director Ken Onditi during a panel session, where he highlighted the Chamber’s role in facilitating regional trade through the iSOKO platform, which connects traders across seven countries. He also emphasized the digitization of the Certificate of Origin to streamline exports, as well as the Jiinue Growth Program that equips SMEs with skills to access finance.

Other panelists included James Mbithi, Anna Masinde, and Wandia Gichuru.

The Britam Biashara Network will continue to be rolled out across counties in collaboration with KNCCI County Chapters.

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The Kenya National Chamber of Commerce and Industry (KNCCI) yesterday signed a landmark Tripartite Memorandum of Understanding (MoU) during the Kenya–Tanzania Business Forum 2026, bringing together KNCCI, the Tanzania National Chamber of Commerce (TNCC), and the Zanzibar National Chamber of Commerce (ZNCC).

The MoU signed in the presence of Kenya’s President Dr William Ruto and Tanzania President Samia Suluhu establishes a structured framework for enhanced regional trade, investment, and private sector collaboration across Kenya, Mainland Tanzania, and Zanzibar. Its core objective is to deepen economic integration by creating stronger linkages between businesses in the three markets.

Key areas of collaboration under the agreement include the promotion of trilateral trade and investment, facilitation of joint trade missions and business forums, and the exchange of market intelligence and policy information. The parties also committed to supporting joint ventures, strengthening SME linkages, and developing regional value chains, particularly in sectors with high cross-border potential.

Additionally, the MoU provides for capacity building through training programmes, institutional strengthening, and coordinated business delegations aimed at unlocking new market opportunities. A Joint Coordination Committee will oversee implementation, ensuring that agreed initiatives translate into tangible outcomes for members.

“We fully support the establishment of a Tanzania – Kenya joint business council as the central platform for structured collaboration. Through sector specific working groups we will ensure continuous engagement and translate private sector priorities into investment partnerships” said Kenya’s President Dr William Ruto.

The impact of this partnership on the business community is expected to be significant. Members of the three chambers will benefit from expanded market access, increased investment opportunities, and improved access to critical business information. Small and medium enterprises, in particular, stand to gain through enhanced participation in regional value chains and exposure to new partnerships and financing opportunities.

Overall, the MoU positions KNCCI and its regional counterparts as key drivers of East African economic cooperation, creating a more connected, competitive, and opportunity-rich environment for businesses across the region.

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The Kenya National Chamber of Commerce and Industry (KNCCI) has today launched the 2026 Annual Business Barometer Survey and Advocacy Strategy, unveiling strong business optimism alongside persistent structural challenges that continue to constrain growth across the country.

Drawing insights from 1,150 businesses across all 47 counties, the Barometer provides one of the most comprehensive, evidence-based assessments of Kenya’s business environment, reinforcing KNCCI’s role as the leading voice of private sector advocacy.

The 2026 Barometer paints a picture of a resilient and forward-looking private sector:

• 1% of businesses reported improved performance, upholding recovery momentum
• Only 10% reported decline, a sharp improvement from 24% in 2025
• A record 86.2% of businesses are optimistic about the year ahead, up from 65% last year

KNCCI President Dr. Erick Rutto described this as a turning point:

“This is not just recovery—it is proof of the resilience and strength of Kenyan businesses. They have adapted, innovated, and survived despite a difficult operating environment.”

Despite the optimism, the survey highlights deep-rooted constraints:

• 4% of businesses cite high taxation as their biggest challenge
• 36% face limited access to affordable finance
• 3% are affected by high energy and fuel costs

In addition, businesses are grappling with heavy regulatory burdens:

• Over 540 licenses and permits across 61 regulatory bodies
• Compliance costs consuming an estimated 30–50% of business resources

Dr. Rutto emphasized the urgency of reform:

“The cost of regulation is no longer just administrative it is a direct barrier to growth. We must simplify compliance and create a predictable business environment.”

The Chamber raised concern over the long-term decline of Kenya’s manufacturing sector:

• Contribution to GDP has dropped from 10.9% in 2013 to 7.2% in 2025

This trend signals weakening industrial competitiveness, driven by high energy costs, taxation, and import pressures.

KNCCI CEO Mr. KK Mutai underscored the importance of evidence-based policymaking:

“The Barometer transforms real business experiences into credible, actionable intelligence. When we engage government, we do so with facts from over 1,150 businesses—not assumptions.”

Former Ambassador to Belgium Prof. Bitange Ndemo echoed this position, calling for a shift in governance:

“Kenya and Africa must make policy decisions based on data. Institutions like KNCCI must remain at the forefront of providing market intelligence that drives economic transformation.”

The survey reveals critical structural realities:

• 67% of businesses are micro-enterprises, underscoring the need for MSME-focused policies
• 70% of businesses are not exporting, despite strong regional opportunities
• Exporting firms outperform non-exporters by 12.7 percentage points, highlighting untapped trade potential

Businesses have issued a clear mandate for reform:

• Improve access to affordable finance (58.3%)
• Reduce cost of energy (47.8%)
• Harmonise taxes and licences (47.7%)
• Clear pending government bills (KES 600–650 billion)

Speaking on behalf of the government Stanley Koske Director for Research, Policy and Industrial Data in the State Department for Industrialization welcomed evidence based intervention by the barometer terming the confidence business trend by entrepreneurs as a sign that the government policies were working.

“We acknowledge that our businesses continue to go through various challenges and as government several measures have been put in place to help alleviate their pain. This includes energy sector reforms, ongoing infrastructure development including extension of the SGR and various roads and industrial parks. We are also reducing duplication of licenses so as to ease regulatory compliance including the need for a one stop investment platform,” Stanley Koske Director for Research, Policy and Industrial Data.

In response, KNCCI has launched a National Advocacy Strategy focused on:

• Tax reform and simplification, including improvements to Turnover Tax
• “One Business, One License” policy to reduce regulatory duplication
• Prompt Payment Bill to unlock liquidity for MSMEs
• Affordable financing solutions, including credit guarantees
• Energy cost reduction, with emphasis on renewable energy
• Export promotion, leveraging AfCFTA, EAC, and COMESA markets

The Chamber noted that Kenya stands at a critical inflection point:

“The foundation for growth is strong, but without decisive policy action, this optimism may not last,” said Mr. Mutai.

If reforms are implemented, 2026 could deliver:

• Stronger MSME growth
• Increased job creation
• Expanded exports
• Improved global competitiveness

However, failure to act risks slowing recovery and eroding business confidence.

The 2026 KNCCI Annual Business Barometer sends a clear message:

Kenyan businesses are ready to grow but they need a supportive, predictable, and data-driven policy environment.

In conclusion the chamber has reaffirmed its commitment to ensuring that: business voices are heard, policies are informed by evidence and advocacy leads to measurable economic change

Download barometer using this link: https://www.kenyachamber.or.ke/wp-content/uploads/2019/08/Annual-Barometer-2026-Report.pdf

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