HENK JAN BAKKER: Netherlands, Kenya trade mission - shared prosperity

Henk Jan Bakker, Ambassador of the King

The future of global trade is not in short-term transactions but in sustainable partnerships that create long-term value.

In times where climate change, food insecurity resulting from low agricultural productivity, water scarcity and increasing unemployment rates are defining challenges, nations must rethink their approach to economic collaboration.

The Netherlands and Kenya have a unique opportunity to demonstrate how trade and investment can be leveraged as a tool to foster mutually beneficial sustainable economic development, innovation and shared prosperity.

Parallel with the state visit of His Majesty King Willem-Alexander and Her Majesty Queen Máxima, the upcoming Kenya-Netherlands Trade Mission on Sustainable Agriculture and Water (March 17-20, 2025), attended by over 50 Dutch companies actively seeking business and investment opportunities in these sectors, represents the huge interest of the Netherlands in Kenya.

This is a step in not only strengthening economic ties but also bridging investment and  nancing gaps while leveraging the complementary strengths between our two nations to achieve positive economic, social and environmental impact.

The Netherlands is amongst the top three export trading partners for Kenya and the largest in the European Union, with a trading volume exceeding all the other EU countries combined.

In 2023, Kenya exported $706 million (Sh91.4 billion) to the Netherlands, an annualised increased rate of 4.84 per cent, from $557 million (Sh72.1 billion) in 2018.

The Netherlands also exported $377 million (Sh48.8 billion) to Kenya. This showcases the signi cant contribution of the Netherlands to Kenya’s export earnings.

The Netherlands is also amongst the top three Foreign Direct Investment contributors to Kenya according to data from the Kenya National Bureau of Statistics.

More than 150 Dutch companies operate in Kenya. They are active in agriculture, health, water, logistics,  nance and energy.

The Netherlands Business Hub plays a pivotal role in bringing together and representing Dutch companies in Kenya. But it’s more than that.

This trade mission is unique in nature by bringing together not only the private sector but also knowledge institutions, NGOs, social enterprises, financial institutions and investors. This demonstrates the much-needed intersection of business, finance, policy, knowledge, expertise and social impact through the renowned ‘Dutch Diamond Approach’.

Businesses, financial institutions and investors are not just looking at Kenya as a market but as a longterm investment destination where investments and financial capital can drive impact and sustainable development.

Kenyan corporates and small and medium enterprises, in turn, will benefit from financing solutions tailored to various sectors, as access to finance has been identified as a key challenge facing local and foreign companies.

This has been actualised further through the establishment of a Dutch Desk by Invest Internation in collaboration with KCB to aid companies seeking to do business in Kenya with account opening, access to credit, trade and commodity finance solutions, and export finance.

Other programmes have also been implemented to support SMEs and women in agricultural value chains with export market readiness and EU market access.

Cultivating Partnerships for a Sustainable Future in agriculture and water Kenya’s agricultural sector is both its economic backbone and a sector under pressure.

It contributes approximately 20 per cent of GDP and is a significant source of employment, yet it faces threats from changing and unpredictable weather patterns due to climate change, as well as challenges related to high production costs and market access.

The Netherlands, as a global leader in agricultural innovation and one of the largest importers of Kenyan agricultural products, can support the gradual transformation of Kenya’s agriculture.

Beyond private sector investments, Dutch expertise in precision farming, climate-smart solutions and advanced supply chain logistics can play a crucial role.

Kenyan agribusinesses and SMEs can benefit from Dutch knowledge in water management, irrigation, biological pest control and access to high quality inputs to enhance yield and quality.

Finally, investments in transport and cold chain logistics can further strengthen Kenya’s strategic location, improving market access and boosting the competitiveness of its agricultural exports.

Kenya is classified as a water-scarce country, with per capita water availability well below the global average. The country faces major challenges in water access, management and distribution, worsened by climate change, rapid population growth and increasing water demand.

Water scarcity affects key sectors such as agriculture, industry and domestic use, impacting food security, public health and economic development.

The Kenyan water sector presents significant opportunities for the Dutch private sector, leveraging the Netherlands’ expertise in water management, technology and sustainable financing.

Dutch companies can play a key role in providing advanced wastewater treatment solutions, desalination technologies, flood risk management and nature-based innovations that enhance water security and resilience.

Aligned with the new policy on international development, the Netherlands will continue working to promote socioeconomic development and resilience building in low- and middle-income countries.

Kenya is one of the countries where the Netherlands implements a combination approach where aid will be linked more explicitly to trade in order to promote private sector development and derisk infrastructure projects.

The trade missions on Sustainable Agriculture and Water align well with the strategic initiatives and interventions identified by the Government of Kenya.

The writer is the Ambassador of the Kingdom of the Netherlands to Kenya.