Sweden backs Sh349 million initiatives to green Kenya’s trade sector
In addition, the programme is projected to attract at least $5 million (Sh647.2 million) in private sector investments aimed at enhancing green logistics infrastructure.
Sweden has committed $2.7 million (approximately Sh349.5 million) to a new partnership with Trademark Africa aimed at fostering sustainable and inclusive trade in Kenya.
The initiative comes as a timely boost for small and medium-sized enterprises (SMEs) preparing for the European Union’s Deforestation Regulation, which takes effect in 2026.
The two-year initiative, known as the Kenya Enhanced Trade Environment and Inclusion (KETEI) programme, is set to align with Kenya’s broader trade goals under existing frameworks, including the African Continental Free Trade Area (AfCFTA).
KETEI will focus on enhancing operational efficiency at ports, advancing environmentally friendly trade infrastructure and policies, and strengthening the capacity of women- and youth-led SMEs to thrive in local and international markets.
The KETEI programme forms a key part of Trademark Africa’s wider mission to promote sustainable and resilient trade systems.
Through this initiative, micro, small, and medium enterprises (MSMEs) with 60% led by women and 40% by youth are expected to boost their export value by $3 million (approximately Sh388.3 million).
They will also receive customized guidance on navigating climate-related export regulations and compliance standards.
In addition, the programme is projected to attract at least $5 million (Sh647.2 million) in private sector investments aimed at enhancing green logistics infrastructure.
During the signing ceremony held on Thursday, Marie Ottosson, Head of the Kenya Development Cooperation Section at the Swedish Embassy, remarked: “Globally, there is rising consumer demand for sustainably produced goods. With the EU Deforestation Regulation (EUDR) set to be enforced in 2026, we are proud to support Kenyan smallholder producers in adapting to these standards and maintaining access to international markets, especially within the European Union.”
Marie Ottosson reaffirmed Sweden’s dedication to backing the AfCFTA, highlighting it as a crucial initiative to strengthen cross-border trade throughout Africa.
In the previous year, Kenya’s horticultural exports reached a value of Sh203.6 billion, with the European Union serving as a major market.
Tea exports were valued at Sh189.1 billion, while coffee exports stood at Sh38.4 billion, with 55 percent of the coffee exports destined for the EU.
In 2023, the European Parliament enacted the EU Deforestation Regulation (EUDR), which aims to curb deforestation and forest degradation.
Under this regulation, certain commodities—including coffee—linked to deforestation will be prohibited from entering or being exported to the EU market after December 30 of this year for medium and large enterprises, and by June 30, 2026 for small and micro enterprises.
Adhering to these rules is therefore critical for the sustainability of Kenya’s coffee subsector, given its significant reliance on the EU market.
Lillian Mwai–Ndegwa, Kenya Country Director for TradeMark Africa, emphasized, “Sweden’s support allows us to tackle structural inefficiencies in the movement of goods and in SME support at both regional and global levels. Beyond expanding and diversifying our markets, it is vital that our growth is inclusive, climate-resilient, and built to last.”
She highlighted that reinforcing trade systems while prioritizing women and youth not only fulfills the vision of AfCFTA but also protects Kenya’s competitive edge in a rapidly evolving global market.
In 2022, Kenya rolled out its AfCFTA strategy aimed at boosting trade and investment across the continent, driving structural transformation, and promoting both economic growth and sustainable development.
