Kenya and UK Sign KSh427B Investment Deal to Spur Trade and Innovation
LONDON — President William Ruto and UK Prime Minister Sir Keir Starmer signed a renewed five-year strategic partnership on Tuesday, unlocking KSh427 billion in new investments targeting key sectors in Kenya.
The agreement, finalized during bilateral talks at 10 Downing Street, is structured around four areas: trade and investment, digital innovation, climate action, and peace and security.
According to a statement from State House, the UK committed KSh17.7 billion to support more than 500 startups and 5,000 tech-driven small businesses. This investment is projected to create up to 30,000 jobs in Kenya’s fast-growing digital economy.
The partnership also outlines joint efforts in artificial intelligence and emerging technologies, aimed at driving equitable digital growth.
In a major boost to Kenya’s financial sector, the UK pledged KSh266.1 billion in investments and an additional KSh32.3 billion in capital markets funding. These funds are expected to accelerate economic expansion through 2030.
As part of the agreement, the UK will establish a regional underwriting hub in Nairobi under the Nairobi International Financial Centre. The hub is projected to manage financial operations worth up to KSh75.5 billion.
“These developments reflect growing investor confidence in Kenya’s economic and financial landscape,” the State House statement read.
To address environmental challenges, the two countries agreed to unlock KSh35.5 billion in green financing. The funds will support projects focused on climate resilience and sustainable infrastructure.
President Ruto and Prime Minister Starmer both emphasized the importance of the deal in strengthening bilateral cooperation and delivering long-term benefits for both countries.
The renewed partnership replaces the original 2020–2025 framework and is expected to deepen economic ties, promote innovation, and support Kenya’s goal of sustainable development.
