Uganda's trade deficit with Kenya has widened significantly in the first half of 2025/26, with imports from Kenya more than doubling to US$592 million. This increase has raised concerns about the growing imbalance between the two countries. Despite this, Kenyan businesses are seeking to strengthen their links with Uganda, viewing the country as a strategic market and investment destination.
The launch of Business Network Uganda, a new initiative by Kenyan entrepreneurs and professionals in Uganda, aims to promote stronger trade ties between the two nations. The network seeks to bring together Kenyan and Ugandan businesses to explore new opportunities and foster cooperation. This move is expected to not only boost trade but also promote economic growth between the two countries.
Kenya's High Commissioner to Uganda, Ababu Namwamba, has urged Kenyan businesses to take advantage of the opportunities available in Uganda. He emphasized that Uganda offers a strategic market and investment destination for Kenyan companies. Namwamba's comments come at a time when Uganda is seeking to increase its exports to Kenya and reduce its trade deficit.
The growth in Uganda's imports from Kenya has been significant, with the trade deficit widening from US$76 million to US$592 million in the first half of 2025/26. This increase is largely attributed to the growing demand for Kenyan goods in Uganda. However, Ugandan businesses are yet to see a corresponding increase in their exports to Kenya.
Business Network Uganda is expected to play a key role in promoting trade between the two countries. The network will provide a platform for Kenyan and Ugandan businesses to interact, share ideas, and explore new opportunities. This move is expected to not only boost trade but also promote economic growth between the two countries.
The launch of Business Network Uganda has been welcomed by both Kenyan and Ugandan businesses. The initiative is seen as a positive step towards strengthening trade ties between the two nations. With the right support and investment, Ugandan businesses are optimistic about increasing their exports to Kenya and reducing the trade deficit.
The strengthening of trade ties between Kenya and Uganda is expected to have a positive impact on the economies of both countries. With Business Network Uganda leading the way, Kenyan and Ugandan businesses are poised to explore new opportunities and foster cooperation.
Key points
- Uganda's imports from Kenya have more than doubled in the first half of 2025/26.
- Kenyan entrepreneurs launch Business Network Uganda to boost trade ties.
- Kenya's High Commissioner to Uganda urges Kenyan businesses to view Uganda as a strategic market and investment destination.
