Netherlands-Kenya share economic prosperity

The future of global trade is not in short-term transactions but in sustainable partnerships that create long-term value. In times where climate change, food insecurity resulting from low agricultural productivity, water scarcity, and increasing unemployment rates are defining challenges, nations must rethink their approach to economic collaboration.

The Netherlands and Kenya have a unique opportunity to demonstrate how trade and investment can be leveraged as a tool to foster mutually beneficial sustainable economic development, innovation, and shared prosperity.

Parallel with the State Visit of King Willem-Alexander and Queen Máxima, the upcoming Kenya-Netherlands Trade Mission on Sustainable Agriculture and Water (March 17-20, 2025), attended by over 50 Dutch companies actively seeking business and investment opportunities in these sectors, represents the huge interest of the Netherlands in Kenya. This is a step in not only strengthening economic ties but also bridging investment and financing gaps while leveraging the complementary strengths between our two nations to achieve positive economic, social, and environmental impact.

The Netherlands is amongst the top three export trading partners for Kenya and the largest in the European Union, with a trading volume exceeding all the other EU countries combined.

 In 2023, Kenya exported $706 million to Netherlands, an annualised increased rate of 4.84 per cent, from $557 million in 2018. The Netherlands also exported $377 million to Kenya. The Netherlands is also amongst the top three Foreign Direct Investment contributors to Kenya according to data from the Kenya National Bureau of Statistics.

More than 150 Dutch companies operate in Kenya. They are active in the agriculture, health, water, logistics financial and energy sectors. The Netherlands Business Hub (NLBH) plays a pivotal role in bringing together and representing Dutch companies in Kenya. But it’s more than that. This trade mission is unique in nature by bringing together not only the private sector but also knowledge institutions, NGOs, social enterprises, financial institutions and investors.

Investment destination

Businesses, financial institutions and investors are not just looking at Kenya as a market but as a long-term investment destination where investments and financial capital can drive impact and sustainable development. Kenyan corporates and small and medium enterprises, in turn, will benefit from financing solutions tailored to various sectors, as access to finance has been identified as a key challenge facing local and foreign companies. This has been actualized further through the establishment of a Dutch Desk by Invest International in collaboration with the Kenya Commercial Bank (KCB) to aid companies seeking to do business in Kenya with bank account opening, access to credit, trade and commodity finance solutions, and export finance.

Kenya’s agricultural sector is both its economic backbone and a sector under pressure. It contributes approximately 20 per cent of GDP.

Smallholder farmers often have limited access to finance, making it difficult to purchase high-quality inputs for better yields. Larger companies, on the other hand, must balance significant investments in sustainability to meet export requirements while dealing with low market prices.

The Netherlands, as a global leader in agricultural innovation and one of the largest importers of Kenyan agricultural products, can support the gradual transformation of Kenya’s agriculture. Beyond private sector investments, Dutch expertise in precision farming, climate-smart solutions, and advanced supply chain logistics can play a crucial role.

Finally, investments in transport and cold chain logistics can further strengthen Kenya’s strategic location, improving market access and boosting the competitiveness of its agricultural exports.

Kenya is classified as a water-scarce country, with per capita water availability well below the global average. Water scarcity affects key sectors such as agriculture, industry, and domestic use, impacting food security, public health, and economic development.

The National Water and Sanitation Plan by the Government of Kenya is estimated to cost $8.32 billion.

Desalination technologies

The Kenyan water sector presents significant opportunities for the Dutch private sector, leveraging the Netherlands' expertise in water management, technology, and sustainable financing. Dutch companies can play a key role in providing advanced wastewater treatment solutions, desalination technologies, flood risk management and nature-based innovations that enhance water security and resilience.

Additionally, Kenya’s focus on public-private partnerships (PPPs) and blended finance models creates a favorable investment climate for Dutch firms specializing in infrastructure development, innovative financing, and impact-driven water solutions.

Aligned with the new policy on international development, The Netherlands will continue working to promote socio-economic development and resilience building in low- and middle income countries.

At the same time, Kenya offers a dynamic investment landscape with significant opportunities for Dutch businesses to expand and contribute to economic growth. The Netherlands is keen to collaborate with the Kenyan government and private sector in fostering a predictable regulatory environment and enhancing the ease of doing business to unlock new avenues for sustainable trade and development in East Africa.

Henk Jan Bakker is the Ambassador of the Kingdom of the Netherlands to Kenya