Kenya, UK ink Sh266 billion deal to boost trade, tech and transport

The renewed pact, which succeeds the 2020–2025 agreement, was announced after President William Ruto met with UK Prime Minister Keir Starmer at 10 Downing Street in London on Tuesday.
Kenya and the United Kingdom have sealed a renewed Strategic Partnership for 2025–2030, unlocking a multibillion-shilling cooperation deal that is set to double bilateral trade, boost digital innovation, and transform infrastructure, placing the Nairobi Railway City project at the centre of the expanded agenda.
President William Ruto and UK Prime Minister Keir Starmer announced the new pact on Tuesday during a bilateral meeting at 10 Downing Street in London. Built on four pillars—trade and investment, green growth and climate action, science and technology, and peace and security—the framework aims to enhance economic development while fostering regional stability and climate resilience.
“This will create wealth and jobs, and deliver tangible economic impact,” said President Ruto, who noted that the agreement would accelerate green financing, strengthen cybersecurity collaboration, and deliver digital skills training to 2.5 million Kenyans.
Under the science, technology, and innovation pillar, the UK will inject £100 million (Sh 17.7 billion) into Kenya’s innovation space.
The funding is expected to benefit more than 500 start-ups, support 5,000 digitally driven SMEs, and generate 30,000 digital jobs.
Kenya and the UK have also committed to deepening collaboration on artificial intelligence and advanced technologies.
On trade and capital flows, the UK pledged to mobilise up to £1.5 billion (Sh266.1 billion) in new investments across Kenya, alongside facilitating $250 million (Sh32.3 billion) in capital markets funding by 2030 to support key economic sectors.
President Ruto highlighted Nairobi’s rising status as a financial and tech hub, pointing to Lloyd’s of London’s planned regional underwriting office at the Nairobi International Financial Centre, which is projected to manage up to €500 million (Sh75.5 billion).
He noted that global firms such as Microsoft, AWS, Apple, and BUPA Global have already set up regional operations in Kenya, further demonstrating growing investor confidence.
The President confirmed that the Nairobi Railway City Project remains the flagship initiative under the renewed partnership.
“This will be transformative; it will improve mobility, stimulate growth and foster prosperity in the Nairobi Metropolitan,” he said, adding that the financing framework is in its final stages, with Kenya providing counterpart funding.
Last week, Cabinet approved the implementation of the Nairobi Railway City Central Station and Public Realm Project, which aims to decongest the capital and revitalise its city centre.
The project, part of the broader urban transformation agenda, will deliver a multi-modal transport hub to serve the rapidly growing number of passengers.
With demand expected to reach 400,000 daily passengers by 2030 and 600,000 by 2045, the new station will have nine platforms and modern access infrastructure capable of evacuating up to 30,000 people per hour.
In the climate action pillar, the UK and Kenya committed to unlocking at least £200 million (Sh35.5 billion) in green financing from public, private, and blended sources to advance clean energy and climate adaptation projects.
People-to-people ties also featured in the deal, with the two countries agreeing to add six weekly Kenya Airways flights between Nairobi and London.
The increase is expected to ease both cargo and passenger congestion, while deepening commercial and tourism connections.
On security, both countries agreed to enhance cooperation through intelligence sharing, joint operations, and training.
A new Defence Cooperation Agreement is set to be signed, with both sides reaffirming mutual respect for each nation’s legal frameworks.
The leaders also agreed to uphold democratic values and the rule of law, with a focus on safeguarding human rights and ensuring legal and policy systems protect all citizens without infringing on others.
The partnership further includes support for regional peace and stability. Kenya and the UK will work together to help stabilise South Sudan, find new solutions to the crisis in Sudan, and continue supporting Somalia.
They also welcomed the United States’ continued involvement in the DRC and underscored the need for harmonised regional responses through the East African Community and SADC.
Kenya’s leadership in the Multinational Security Support Mission in Haiti was also acknowledged, with both leaders committing to its continued success.