Sweden has signed a $2.7 million (about Ksh350 million) agreement with TradeMark Africa to boost sustainable and inclusive trade in Kenya. The two-year Kenya Enhanced Trade Environment and Inclusion (KETEI) programme will support Kenya in meeting its national ambition within the various signed trade agreement frameworks such as the African Continental Free Trade Area (AfCFTA).
The programme will do so by promoting port efficiency, improving green trade infrastructure and policy landscape in Kenya and enhancing the resilience of women- and youth-owned SMEs participating in trade. The KETEI programme aligns with TradeMark Africa’s broader strategy of supporting sustainable and resilient trade.
Through the programme, it is anticipated that supported MSMEs (60% women-led, 40% youth-led) will realise a $3 million increase in export value, alongside tailored support on climate-linked export regulations and standards. Further, at least $5 million in private investment is expected to be leveraged towards green logistics infrastructure.
Speaking at the signing ceremony, Marie Ottosson, Sweden’s Head of Kenya Development Cooperation Section, said globally there is growing demand from consumers for goods that are produced sustainably. “With the EU Deforestation Regulation (EUDR) set to take effect in 2026, we are pleased to support Kenya’s smallholder producers in meeting these requirements and securing continued access to global markets and particularly in the European Union. At the same time, we remain strong supporters of the AfCFTA, which we view as a strategic step toward deepening cross-border trade across the continent,” said Ottosson.
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In 2023, Kenya exported coffee worth approximately $252.12 million, with the European Union (EU) accounting for 55% of this value. That same year, the EU Parliament passed the EUDR aimed at reducing deforestation and forest degradation. The EUDR mandates that certain commodities, including coffee, linked to deforestation must not be placed on or exported to the EU market after 30 December 2025 for medium and large companies and 30 June 2026 for small and micro businesses.
This makes compliance with these regulations essential to the success of Kenya’s coffee subsector, which relies heavily on the EU market.
Ms Lillian Mwai–Ndegwa, TradeMark Africa’s Kenya Country Director, said Sweden’s support enables it to address structural inefficiencies in how goods move and how SMEs are supported, both regionally and globally. “In addition to expanding and diversifying our markets, we must ensure that growth is inclusive, climate-resilient and future-proof,” she said. “By strengthening trade systems and placing women and young people at the centre of the process, we are not only fulfilling the promise of the AfCFTA but also safeguarding Kenya’s competitiveness in an increasingly dynamic global economy.”
In 2022, Kenya launched its AfCFTA strategy, which sought to facilitate an expansion of the country’s trade and investment within Africa, support structural transformation, and foster economic growth and sustainable development.
Three core objectives underpin the strategy: enhancing secure and efficient export trade through improved customs processes and infrastructure; promoting inclusivity in international trade by integrating MSMEs, women and youth; and achieving these aims in ways that contribute to environmental sustainability, including the promotion of green trade practices.
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