The Kenya Association of Manufacturers (KAM) and the Kenya National Chamber of Commerce and Industry (KNCCI) led a trade mission to Nigeria on March 17-18, 2025, as part of efforts to strengthen business ties between the two African economic giants. The initiative reflects a broader push to deepen intra-African trade under the African Continental Free Trade Area (AfCFTA), which seeks to eliminate barriers and enhance economic cooperation across the continent.
Kenya, with a GDP of over $100 billion, has emerged as a key investment hub in Africa, driven by stable economic policies, a strategic location, and a growing manufacturing and services sector. The country attracted more than $1 billion in foreign direct investment in 2023. However, like most African nations, its trade partnerships remain largely external, with Uganda and Tanzania being its primary continental partners. The Kenya-Nigeria Trade Mission signals a shift in approach, aiming to unlock new opportunities within Africa’s largest economy.
Nigeria, with a population exceeding 200 million and a GDP of over $350 billion, presents a significant trade opportunity for Kenya. Despite their economic strengths, direct trade between the two nations has historically been limited. AfCFTA aims to change this by facilitating the free movement of goods and services, reducing tariffs, and harmonising regulations to encourage stronger economic collaboration.
During the visit, the Kenyan delegation engaged with key Nigerian institutions to explore trade and investment opportunities. A highlight of the mission was a visit to Idumota Market in Lagos, one of West Africa’s largest and oldest commercial hubs. There, Kenyan business leaders interacted with traders, importers, and exporters, gaining firsthand insights into market dynamics, supply chain challenges, and consumer preferences. Further visits to local supermarkets helped them understand retail distribution strategies and product placement, offering valuable lessons for Kenyan businesses looking to enter the Nigerian market.
In addition, the delegation met with the Lagos Chamber of Commerce and Industry (LCCI) to discuss strategies for strengthening business ties between East and West Africa. LCCI’s Deputy President, Engr. Leye Kupoluyi, received the team, and discussions centered on fostering virtual business-to-business (B2B) engagements, reciprocal trade missions, and deeper commercial cooperation.
The delegation also engaged with the Manufacturers Association of Nigeria (MAN), exploring opportunities for knowledge exchange, joint ventures, and industrial collaboration. Given the similarities in Kenya and Nigeria’s industrial sectors, such partnerships could drive innovation, improve manufacturing processes, and boost trade in locally produced goods.
One of the key challenges in intra-African trade remains access to finance and efficient payment systems. To tackle this, the Kenyan delegation collaborated with Wema Bank Plc’s Africa Business and Structured Finance Desk. Discussions focused on streamlining transactions, mitigating financial risks, and improving banking solutions for cross-border trade. Reliable financial services are crucial for businesses looking to expand within Africa, as they reduce transaction costs and enhance trade efficiency.
Additionally, the delegation held a high-level dialogue with Nigerian importers and traders, including representatives from the National Association of Nigerian Traders (NANTS). The discussions highlighted key trade barriers such as tariffs, logistics bottlenecks, and the need for standardised product regulations. Addressing these challenges is critical to ensuring smoother trade flows between Kenya and Nigeria and within the broader AfCFTA framework.
With small and medium-sized enterprises (SMEs) driving economic growth and employment across Africa, the trade mission reinforced the need to support them through improved market access, capacity building, and policy alignment. SMEs often face significant obstacles when expanding across borders, including regulatory inconsistencies, financing constraints, and supply chain inefficiencies. Strengthening cooperation between African business communities can help address these issues and create a more favorable trade environment.
Since AfCFTA’s implementation in 2021, intra-African trade has grown steadily, reaching $192.2 billion in 2023. However, much remains to be done to unlock the full economic potential of trade between African nations. The Kenya-Nigeria Trade Mission, facilitated by Tradeflow Africa, marks an important step in that direction. By fostering stronger commercial ties, addressing existing barriers, and capitalising on shared opportunities, Kenya and Nigeria can lead the way in building a more prosperous and integrated African economy.
As African nations continue to embrace intra-continental trade, sustained engagement, policy alignment, and mutual respect will be essential. The success of this trade mission could pave the way for similar initiatives across the continent, ensuring that Africa’s vast economic potential is fully realised through deeper regional cooperation.
