NAIROBI — Sweden has pledged KSh348 million to help Kenya build a greener, more inclusive trade environment as the country prepares for tighter global rules on sustainable exports.
The two-year initiative, called the Kenya Enhanced Trade Environment and Inclusion (KETEI) programme, was launched this week in Nairobi. The funding deal was signed by Sweden and TradeMark Africa, an organisation focused on improving regional trade.
At the heart of the project is a plan to ease trade bottlenecks, boost port efficiency, and help women- and youth-led businesses meet rising global demands for environmentally sound goods.
“With growing pressure from global consumers and regulations like the EU Deforestation Law, producers must adapt or risk being left behind,” said Marie Ottosson, Sweden’s Head of Development Cooperation in Kenya. “We are proud to support Kenya’s smallholders and SMEs to stay competitive while protecting the environment.”
The programme will support businesses in complying with new EU rules that ban the import of goods linked to deforestation. The EU Deforestation Regulation (EUDR), passed in 2023, targets products such as coffee, cocoa, and palm oil. It comes into effect in late 2025 for larger companies, and mid-2026 for smaller exporters.
Kenya’s coffee sector which earned about $252 million in exports last year sends more than half of its beans to Europe. That makes compliance with EU regulations vital, experts say.
“We’re looking at how to make Kenya’s trade future-proof,” said Lillian Mwai–Ndegwa, Country Director for Kenya at TradeMark Africa. “We want to expand markets, but we also want that growth to be fair, green, and resilient. That means fixing inefficiencies, supporting exporters, and making sure women and young people are part of the solution.”
The programme aims to raise at least $5 million in private investment in green logistics infrastructure. It also expects to help SMEs increase their export value by $3 million with 60% of the supported firms led by women, and 40% by youth.
Kenya’s wider strategy aligns with the goals of the African Continental Free Trade Area (AfCFTA), which the country formally joined in 2022. Its national plan seeks to strengthen trade across the region, support local businesses, and promote sustainable development.
The strategy focuses on three main goals: improving export systems and customs infrastructure, boosting participation of marginalised groups in trade, and encouraging eco-friendly practices.
At the launch event in Nairobi, speakers emphasised that the benefits of trade must be widely shared. “This isn’t just about numbers. It’s about building systems that include everyone, protect our environment, and make trade work for the next generation,” said Mwai–Ndegwa.
The partnership with Sweden signals growing international backing for Kenya’s green ambitions. It also highlights the importance of trade as a tool for both economic recovery and climate action, especially as African countries look inward to grow regional economies while meeting global standards.
