Kenya and the Netherlands have launched two new programmes worth a combined €2.74 million (approximately Sh410 million) to improve the business environment, address investment barriers and strengthen trade relations between the two countries.
The initiatives were unveiled during the Sustainable Trade Roundtable held in Nairobi on Tuesday, November 3, bringing together government officials, Dutch businesses, industry associations and other stakeholders to discuss challenges facing businesses and opportunities for deeper economic cooperation.
The programmes will run for three years and focus on accelerating business climate reforms, strengthening regulatory systems and creating a more favourable environment for private sector investment.
The first initiative, valued at €1.74 million, will be implemented by Financial Sector Deepening Kenya (FSD Kenya), the Business Registration Service (BRS) and the Competition Authority of Kenya.
It will focus on accelerating business climate reforms through digital regulatory services, enhanced financial transparency and more competitive public procurement.
The second programme, valued at €1 million, will be implemented by Genesis Analytics, Aaereton Blu and KenInvest.
It will support the development of pro-investment policies and establish an early-warning observatory through a dedicated Kenya Investment Delivery Unit.
The unit will identify emerging regulatory challenges and address rising business costs affecting investors.
Speaking during the roundtable, Netherlands Vice Minister for International Development Pascalle Grotenhuis described Kenya as a strategic partner and one of three priority countries in Sub-Saharan Africa, alongside South Africa and Ghana.
“Kenya is a strategic partner for the Netherlands and we see significant opportunities to deepen our economic cooperation,” she said.
Grotenhuis said bringing together government and business would help identify practical solutions to improve the business environment, unlock investment opportunities and strengthen trade relations.
She identified agriculture and food systems, water, health, agro-logistics, renewable energy, digitalisation and climate-resilient infrastructure as key areas of cooperation.
She also highlighted the potential of strategic economic corridors, particularly the Northern Corridor, in strengthening Kenya's position as a regional trade gateway.
Director of Agriculture in the State Department for Agriculture Evelyn Heyi said closer cooperation between the two countries was important in facilitating trade and expanding market access for Kenyan agricultural products.
“Strengthening this partnership requires continued collaboration between our governments to streamline regulatory frameworks, address trade barriers and create a more predictable environment for businesses,” Heyi said.
The roundtable also provided Dutch companies operating in Kenya with an opportunity to highlight challenges affecting their operations.
Among the concerns raised were high air freight costs, delayed VAT refunds, double taxation within the East African Community and unpredictable regulatory and policy changes.
Participants called for sustained government engagement and stronger public-private collaboration to address the challenges, improve investor confidence and create a more competitive business environment.
The two programmes are expected to strengthen institutional capacity, address regulatory barriers and support private sector-led investment and growth.
The engagement builds on longstanding economic and diplomatic relations between Kenya and the Netherlands, including the State Visit in March 2025 and the establishment of the Kenya-Netherlands Joint Trade Committee.
The committee provides a structured platform for economic dialogue and cooperation between the two governments.
Leave a Reply