India, Kenya deepen trade ties, strong push towards local currency settlement

India and Kenya are intensifying trade relations and reducing transaction frictions following the 10th Session of the India–Kenya Joint Trade Committee in Nairobi, co-chaired by Commerce Secretary Rajesh Agrawal and Kenya’s Principal Secretary for Trade Regina Akotah Ombam. Bilateral trade rose 24.91% to $4.31 billion in 2025–26 from $3.45 billion in the prior fiscal, reinforcing India’s role as a key trading partner. Discussions emphasized trade diversification, market access, and complementarities in engineering goods, pharmaceuticals, agriculture, and electronics.

Both sides committed to promoting local currency settlement to insulate trade from global currency volatility, noting that Kenyan banks have opened Special Rupee Vostro Accounts with Indian banks and exploring a broader Local Currency Settlement mechanism. Sectoral cooperation includes expanding exports of automobiles, machinery, and construction equipment; infrastructure support for Kenya’s Standard Gauge Railway through feasibility studies, project management, and rolling stock; and potential collaboration in shipbuilding with Indian shipyards.

In pharmaceuticals, India reaffirmed its role as a supplier of affordable generics and medical devices and proposed enhanced business-to-business engagement, while both sides addressed sanitary and phytosanitary barriers to agricultural trade. India offered support for Kenya’s renewable energy goals, including solar and wind projects, with Kenya confirming its decision to sign the International Solar Alliance Framework Agreement. Discussions on digital public infrastructure covered UPI-like payment systems, Bharat Connect, and digital platforms to advance financial inclusion.

(Source：The Statesman)