Inside the Six Agreements Reshaping Kenya, South Africa’s Economic Relations

Kenya and South Africa have expanded their bilateral relations through signing six Memoranda of Understanding to promote economic growth, regional integration and sustainable development.

President William Ruto and South African President Cyril Ramaphosa witnessed the signing of six Memoranda of Understanding aimed at strengthening bilateral cooperation and advancing the strategic partnership between Kenya and South Africa.

The six new instruments bring the total number of bilateral agreements and memoranda concluded between the two countries to 34, reflecting the growing relations that were re-established in 1994.

According to Kenya’s Ministry of Foreign and Diaspora Affairs, the agreements were signed during President Ruto’s State Visit to South Africa in June 2026 and cover cooperation in trade facilitation, shipping and maritime transport, Technical and Vocational Education and Training (TVET), gender equality and women empowerment, arts, culture and heritage, as well as sport and recreation.

Speaking during a joint media briefing at the Union Buildings in Tshwane, President Ruto said the agreements demonstrate growing ties between Kenya and South Africa.

The two leaders committed to strengthening trade and leveraging opportunities under the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade, industrialisation and job creation.

“President Ruto and I agreed that the AfCFTA must serve as a catalyst for inclusive growth, industrialisation and job creation,” President Ramaphosa said.

Among the agreements signed was a Memorandum of Understanding on the facilitation of trade through cooperation in standardisation, technical regulations, conformity assessment, accreditation and metrology.

The agreement is expected to address technical trade barriers, improve market access and facilitate the movement of goods between the two countries.

President Ruto noted that while significant progress has been made in strengthening economic ties, tariff and non-tariff barriers continue to impede the full potential of intra-African trade. He said the relevant ministries have been tasked with accelerating efforts to address these challenges.

President Ruto noted that bilateral trade between Kenya and South Africa rose from $590 million in 2024 to $650 million in 2025.

However, trade between the two countries remains heavily imbalanced.

Notably, Kenya imports more goods from South Africa, with South African products dominating sectors such as manufactured goods, machinery, pharmaceuticals, chemicals, and retail products.

The Standard reports that Kenya’s exports to South Africa in 2020 included gold, soda ash and cut flowers. In 25 years, Kenya’s exports to South Africa increased at an annual rate of 0.49 per cent, from US$30.7 million in 1995 to US$34.6 million in 2020, while South Africa’s exports to Kenya increased at an annual rate of 2.94 per cent, from US$249 million in 1995 to US$513 million in 2020.

The main products exported from South Africa to Kenya were coal briquettes, delivery trucks and semi-finished iron.

However, traders face barriers across different trading blocs because South Africa is a member of the Southern African Customs Union while Kenya is in the East African Community, and these blocs apply external tariffs and other administrative measures that restrict entry of non-members into their markets.

Other challenges include items of trade and stringent quality standards. South Africa mainly exports minerals which Kenya may not need. Similarly, Kenya exports agricultural commodities like tea and coffee that South Africa has been able to order easily from its neighbours.

The Standard further notes that Kenya ran a trade deficit of Sh40.1b in 2021 – that’s the difference in value between what Kenya bought from South Africa (Sh44.07b) and the Sh3.96b worth of goods that it sold there.

The November 2022 visit by President Ramaphosa to Kenya signals that South Africa is keen to build on the Memorandum of Understanding on trade and investment that the two states signed in 2016.

The recent move by the East African Community (EAC), Southern African Customs Union and the Common Market for Southern and Eastern Africa (COMESA) to harmonise their tariffs under the AfCFTA is a major step towards eliminating some of the trade barriers between Kenya and South Africa. The continental market deal is also expected to harmonise quality standards for traders across Africa.

During President Ramaphosa’s visit to Kenya, the meeting with President Ruto at State House, Nairobi, resulted in an agreement allowing Kenyans visa-free travel to South Africa.

President Ramaphosa’s move to reciprocate an approach that allows South Africans to visit Kenya visa-free for up to 90 days in a calendar year is further expected to boost trade.

According to Kenya’s Ministry of Foreign and Diaspora Affairs, to enhance connectivity between East and Southern Africa, the two countries also signed an agreement on shipping and maritime cooperation. The framework will strengthen logistics networks, facilitate trade flows and support implementation of the AfCFTA.

AllAfrica.com, a South African news website, notes that with Kenya serving as a gateway to East Africa and South Africa being a major economic hub in Southern Africa, enhanced maritime cooperation is expected to improve the movement of goods and services across the continent.

“South Africa appreciates Kenya’s key role as a gateway to East Africa and as one of the leading voices on matters of peace, security and development on the continent,” President Ramaphosa said.

Kenya and South Africa further signed an agreement on gender equality and women’s empowerment to promote collaboration on policies and programmes that enhance women’s participation in leadership, governance, entrepreneurship and economic development.

In support of human capital development, the two countries signed a Memorandum of Understanding on Technical and Vocational Education and Training aimed at strengthening cooperation in skills development, curriculum design, vocational training and workforce preparedness.

According to allAfrica.com, President Ramaphosa said South Africa and Kenya have agreed to deepen cooperation in skills transfer and human capital development.

The President noted that the Joint Trade Committee has underscored the importance of increased investment, industrial cooperation, skills transfer and technology exchange in strengthening economic ties.

Notably, South Africa will need teachers of Kiswahili because it recently unveiled plans to introduce the language as a taught subject in its classrooms, and this will create opportunities for Kenyans.

Kenya and South Africa also signed agreements on arts, culture and heritage, and sport and recreation, which will promote cultural exchanges, preserve shared heritage and strengthen people-to-people ties while enhancing collaboration between sporting institutions and supporting athlete development.

This comes as Kenya prepares to co-host the 2027 Africa Cup of Nations alongside Uganda and Tanzania.

AllAfrica.com highlights that the pact aims to deepen cultural exchanges, preserve heritage resources and strengthen cooperation between artists, cultural institutions and creative industries in both countries.

South Africa and Kenya have long-standing historical ties rooted in solidarity during the struggle against colonialism and apartheid, making cultural cooperation a natural extension of their relationship.

According to Kenya’s Ministry of Foreign and Diaspora Affairs, President Ramaphosa said that the agreements will enhance collaboration in trade, investment, skills development, infrastructure development and regional integration.

On regional and continental issues, the two Presidents discussed peace and security developments across Africa and reiterated their commitment to African-led solutions to African challenges. They pledged continued collaboration through the African Union and other multilateral platforms in advancing peace, stability and sustainable development on the continent.

The leaders also reaffirmed their support for ongoing African Union institutional reforms and called for a more inclusive, representative and responsive global governance architecture that reflects contemporary realities and the aspirations of developing nations.

Ramaphosa and Ruto expressed confidence that the agreements would deliver tangible benefits to the peoples of Kenya and South Africa while advancing the African Union’s Agenda 2063 and the continent’s broader objectives of economic integration, prosperity, peace and sustainable development.

The new agreements mark another milestone in South Africa and Kenya’s relations to expand economic cooperation and boost intra-African trade.

The two countries have developed significant bilateral partnerships, with cooperation spanning trade, investment, education, agriculture, tourism, defence, home affairs, transport and environmental management.

“Over three decades, we have built one of the most impactful partnerships on the continent, grounded in mutual respect, shared values, and a common vision for the prosperity of our people,” President Ruto said.

The Heads of State expressed confidence that the six agreements will translate into tangible benefits for citizens, while advancing Africa’s broader goals of economic integration, industrialisation and sustainable development.

Speaking at the South Africa–Kenya Business Forum in Midrand, Johannesburg, on June 4 2026, President Ruto said that the two countries’ bilateral ties continue to expand across trade, investment, tourism, aviation, financial services, manufacturing, ICT and logistics, providing a strong foundation for enhanced economic cooperation.

“Kenya and South Africa stand among our continent’s foremost economic anchors,” President Ruto said.

He emphasised that the AfCFTA presents an opportunity to create a competitive market capable of attracting investment, creating jobs and accelerating industrialisation.

According to Kenya’s Ministry of Foreign and Diaspora Affairs, President Ruto called for deliberate efforts to build integrated regional value chains in manufacturing, agriculture, mining, logistics, pharmaceuticals, energy, digital services and green industrialisation.

He further highlighted opportunities for cooperation in automotive manufacturing, pharmaceuticals, mining, chemicals and steel, where South Africa’s industrial strengths complement Kenya’s position as a regional production, innovation and logistics hub.

President Ruto called for increased investment in agro-processing, irrigation, cold-chain logistics and agricultural value chains to enhance food security and strengthen intra-African trade.

President Ramaphosa said that Kenya is one of South Africa’s most important trading partners on the continent outside the Southern African Development Community (SADC).

He underscored the role of development finance institutions in supporting key infrastructure projects and expressed readiness to expand cooperation in catalytic infrastructure, technology transfer, industrial innovation, digital trade and artificial intelligence.

The two Presidents committed to fully implementing the outcomes of the Kenya–South Africa Joint Commission for Cooperation and the Joint Trade Committee to ensure that bilateral agreements translate into tangible benefits for businesses, investors and citizens.

The Standard reports that the South African President Ramaphosa dismissed claims of rivalry between Kenya and South Africa, describing the two countries as strategic partners with a shared vision for Africa.

 “We are not rivals. South Africa and Kenya never see ourselves as rivals. We are complementary, and we have a special strategic relationship that speaks to friendship, respect and equality,” said Ramaphosa.

The South African President revealed that the two countries often align on key continental and global issues and continue to deepen cooperation.

Ramaphosa affirmed that Kenya remains South Africa’s largest trading partner in East Africa.

According to The Conversation, trade among African nations is low, at about 16 per cent of the continent’s total trade volume. This is much lower than intra-regional trade levels in Europe (68 per cent) and Asia (59 per cent).

The Kenya Association of Manufacturers (KAM) emphasises that intra-African trade remains one of the continent’s greatest opportunities for economic growth.

KAM, on its official X handle, notes that despite the progress made through the AfCFTA, many manufacturers continue to face barriers that limit regional trade.

The Association revealed that Kenya has been at the forefront of championing the implementation of AfCFTA, with more than 400 consignments traded under the preferential agreement.

The country has successfully exported products including clean cooking stoves, tea, coffee, vehicle batteries, electric bicycles, textiles, steel, plastic products, confectionery, and biscuits, demonstrating the potential for Kenyan manufacturers to access new markets across Africa.

KAM notes that currently, trade under AfCFTA accounts for 11 per cent of Kenya’s intra-African trade, compared to 15 per cent within the East African Community and 13 per cent within COMESA.

According to Trade Law Centre (tralac), Kenya is one of East Africa’s leading economies and a regional trade and logistics hub, playing a central role in facilitating intra-African trade.

The country is a member of the EAC, COMESA and the Intergovernmental Authority on Development (IGAD) Regional Economic Communities (RECs). It is also part of the Tripartite Free Trade Area (TFTA), though not yet operational.

South Africa alone accounted for 25 per cent of Kenya’s imports from Africa while Tanzania, Egypt, and Uganda collectively accounted for 51 per cent of Kenya’s imports from Africa. The top five imports account for roughly 37 per cent of Kenya’s total imports from Africa, highlighting the importance of energy, food security, and transport-related imports.

Overall, imports from Africa rose by 32 per cent between 2023 and 2024. Kenya’s intra-Africa total trade for 2024 amounted to 5.14 USD billion, including exports and imports.

In 2024, 96 per cent of Kenya’s exports to IGAD went to just four countries: Uganda, South Sudan, Somalia, and Ethiopia, with Uganda leading by a wide margin. Kenya’s leading exports to IGAD are industrial inputs, mineral products, and agro-industrial goods.

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