Kenya Finalises Trade Deal Negotiations with China
Kenya has completed negotiations on a bilateral trade agreement with China that will expand export opportunities across the agriculture and manufacturing sectors. William Ruto announced that about 98 per cent of Kenyan goods will enter the Chinese market duty-free. This move opens access to one of the world’s largest consumer markets.
The agreement follows earlier discussions and a preliminary deal reached in January. It also builds on commitments signed during the President’s state visit to Beijing. Trade between the two countries currently favours China. The government now expects the agreement to support export growth and gradually reduce the trade imbalance.
Agricultural exports, such as horticultural products and tea, could benefit significantly from expanded market access. Officials also noted strong economic indicators supporting the agreement. Kenya maintained controlled inflation in 2025 while foreign direct investment rose above $2 billion. Authorities expect improved access to the Chinese market to increase demand for Kenyan agricultural and manufactured goods.
Source: Reuters
Kenya’s Flower Industry Loses Millions Due to Iran Conflict Disruptions
Kenya’s flower industry is losing up to $1.4 million each week following disruptions linked to the conflict involving Iran. Over three weeks, total sector losses exceeded $4.2 million. These disruptions have affected cargo transport routes that exporters rely on to reach European markets.
Freight charges have nearly doubled to about $5.80 per kilogram. This marks the highest shipping cost level recorded in a decade and has reduced export competitiveness. Several farms have already scaled down shipments. Some exporters reported volume declines of more than half. Others discarded flowers because delays limited cargo space availability.
Industry leaders warn that continued disruption could trigger impacts similar to those experienced during the COVID-19 pandemic. The sector supports hundreds of thousands of jobs across the horticulture value chain. Stakeholders are now urging the government to introduce direct cargo flights to Europe to stabilise exports.
Source: Associated Press News
Maize Seed Prices Slashed as Government Rolls Out New Subsidy
The Kenyan government has introduced a new subsidy programme to reduce the price of certified maize seeds ahead of the 2025–2026 planting season. The programme includes a KSh2 billion allocation to support farmers with affordable planting inputs. Authorities directed the Kenya Seed Company to implement the revised pricing structure immediately.
Farmers will now purchase a 1-kilogram packet for KSh 260. A 2-kilogram packet will cost KSh525. Larger packages will also cost less. A 10-kilogram packet now sells at KSh2,625, while a 25-kilogram packet costs KSh6,560. Lower prices will improve access to certified seeds for smallholder farmers who produce most of Kenya’s maize.
Officials expect stronger adoption of improved seed varieties to increase yields. Higher productivity will support national food security and stabilise maize supply during the upcoming planting season. The subsidy forms part of a wider strategy to strengthen staple crop production and protect farmer incomes through lower input costs.
Source: The Star