Business increase between Kenya and Somalia, buoyed by Mogadishu's diaspora

Speaking during the official opening of the second edition of the Somalia, Kenya and Diaspora Trade week at the Business Bay Square (BBS) Mall in Eastleigh yesterday, Ms Askul said trade is likely to increase due to the efforts by the private sector engagements as well as the effects of the EAC Common Market protocol.

“Kenya and Somalia share deep commercial, social and cultural ties, rooted in centuries of trade across the Indian Ocean. Border communities have fostered exchanges of goods and ideas, with the Somali diaspora playing a vital role in sustaining trade and supplying capital and expertise. These historic connections remain active and are crucial engines of commerce today,” said Askul.

The Somalia-Kenya Diaspora forum was also graced by Somalia’s Minister of Commerce and Industry Gammal Mohamed Hassan, Nation Media Group (NMG) Group Managing Director and Chief Executive Officer Geoffrey Odundo and Somalia Ambassador to Kenya Jabril Abdulle, among other dignitaries.

“This forum comes at a defining moment not only for the bilateral relations between Kenya and Somalia but also for our East African Community (EAC) region. Somalia joined the EAC in 2024, a milestone that has significantly influenced economic relations within the region and deepened ties with Kenya,” said Askul.

Access to an integrated market, harmonised trade rules, and regional value chains provides Somalia and Kenya opportunities to scale production, increase exports, and attract investment.

“The two EAC partner states have had warm trade relations for generations. For example, whereas Kenya exports to Somalia experienced a drop of 30 percent from 2013 to 2019, the total exports later recovered to grow by 89.7 percent from 2020 to 2023,” said Askul.

 “The growth momentum, however, slowed in 2024, registering a 19 percent drop. The Kenya imports from Somalia on the other hand grew by 66 percent during the period 2013 to 2019 before dropping by 89 percent in 2023 and recovering to sharply grow by 1000 percent in 2024.”

Mogadishu bought from Kenya goods and services worth Sh5 billion over the quarter to September 2024, lifting Nairobi exports to its neighbours in the region and averting a drop of Sh 84 billion value reported last year.

“This trend demonstrates strong potential for continued growth, supported by the EAC Customs Union’s provisions for free movement of goods.”

Structured policy

Somalia’s commerce minister commended the collaboration between Somalia and the Nation Media Group in promoting businesses between the two countries, saying the business atmosphere is becoming even better through a well-structured trade policy.

“Somalia is advancing from an economy shaped by informality towards one anchored in institutions, credibility and skills,” said Mohamed.

“This transition is already in motion. It is grounded in reforms that strengthened market confidence, improved governance and capacity of the private sector to operate competitively.”

Mr Odundo said the second edition of the Kenya-Somalia Trade Week, themed “Building Partnerships and Promoting Entrepreneurship Across Borders,” a continuation of the Invest Somalia Conference, is designed to foster connections between businesses in Kenya and Somalia.

“At Nation Media Group, our mission is to positively influence society. This mission is demonstrated through our continued commitment to the sectors that impact society,” said Odundo.

“The Kenya-Somalia Trade Week is therefore not just another event in our calendar; it underscores our responsibility as the region’s most trusted media organization to amplify transformative ideas and drive conversations that shape sustainable progress and inclusive growth across the region.”

Reflecting on the company’s initial engagement in Somalia two years ago, Odundo said Somalia’s entry into the EAC in 2023 unlocked significant opportunities, attracting keen interest from businesses eager to explore new markets.

“However, lingering concerns over the country’s past often cast a shadow over business and investment decisions. Recognizing this, we leveraged our convening power to host the first Invest Somalia Conference in April 2024,” he said.

Read: Treasury reprieve for thousands of retired teachers over dues

“This milestone event organised in partnership with Somalia’s Ministry of Planning, Investment, and Economic Development, as well as the Somalia Investment Promotion Office, drew over 750 delegates, underscoring the strong interest and desire to build deeper economic ties.”

Last year, the inaugural Kenya–Somalia Trade Week, attracted on average daily footfall of 3,250 attendees, participation by 76 exhibitors, and representation from 15 small and medium-sized enterprises (SMEs).

This year, the exhibition attracted more SMEs, the health sector, and the education sector.

“This year’s Somalia-Kenya Trade Week, thereby, hopes to galvanise cross-border collaboration, entrepreneurs, investors, and policymakers to build lasting partnerships that drive innovation and inclusive economic growth across our borders,” said Odundo.

Kenya, as the only EAC partner sharing a land border with Somalia, is central to Somalia’s connectivity.

Investments in cross-border corridors, logistics hubs, ports, and border infrastructure will lower transport costs, enhance trade, and integrate border communities.

The event was also graced by NMG'S Chief Commercial Officer James Sogoti, host– BBS Mall CEO Munir Mohammed, Prof Cisse Xalane of the Somali Chamber of Commerce and Industry, Mr Mohamed Shire, Director-General in Somalia's Ministry of Planning and Investment and Economic Development, among others.

The conference closes on Friday. 

Follow our WhatsApp channel for breaking news updates and more stories like this.