Somalia And Kenya Seek To Expand Economic Cooperation Beyond Trade

GOOBJOOG NEWS|NAIROBI: Somalia has signaled a renewed push to deepen its economic partnership with Kenya, with officials highlighting reforms and new regional opportunities during the second Somalia–Kenya & Diaspora Trade Week held in Nairobi.

The forum, which brought together policymakers, entrepreneurs, investors and diaspora business leaders, underscored Mogadishu’s growing focus on expanding cooperation beyond the traditional exchange of goods to include services, investment and cross-border ventures.

Somalia’s Minister of Commerce and Industry, Gamal Mohamed Hassan, said the federal government is implementing reforms aimed at improving the business environment and attracting private sector investment. He pointed to regulatory adjustments and efforts to streamline procedures as part of broader measures designed to position Somalia as a competitive destination for regional trade and capital.

The discussions come as Somalia advances its integration into the East African Community (EAC), a move officials say opens new prospects for harmonised trade policies and participation in regional value chains. Kenyan Cabinet Secretary for East African Community and Regional Development Beatrice Askul, said Somalia’s entry into the bloc has injected fresh momentum into bilateral economic ties.

Trade between the two countries has grown steadily in recent years, with Kenya exporting a wide range of goods to Somalia. However, Somali participants stressed the need to rebalance and diversify the relationship by encouraging greater Somali exports and investment flows in both directions.

Unlike previous editions, this year’s Trade Week expanded its scope to include healthcare, education and technology, reflecting recognition that sustainable economic cooperation requires stronger service sectors and social infrastructure.

Delegates also acknowledged persistent challenges. Somali traders cited high transport costs, logistical inefficiencies and non-tariff barriers that continue to constrain cross-border commerce, particularly for small and medium-sized enterprises.

Despite these hurdles, the tone of the forum was largely forward-looking. Participants discussed joint ventures, cross-border logistics hubs and digital marketplaces as practical pathways to scale trade.