Kenyan farmers, cooperatives and exporters are set to access easier financing for international trade following a new partnership between the Kenya National Chamber of Commerce and Industry (KNCCI) and Co-operative Bank of Kenya aimed at expanding exports to China and the wider Asian market.
The two institutions on Wednesday signed a Memorandum of Understanding (MoU) establishing the Agricultural Export Financing and Trade Facilitation Programme, a two-year initiative designed to tackle one of the biggest obstacles facing exporters—limited access to affordable trade finance.
The programme will initially support exports of coffee, tea, avocados, macadamia, herbs, chillies and other high-potential agricultural products by providing pre-shipment financing. The funding will enable exporters to procure, process, certify, package and ship produce before receiving payment from overseas buyers.
Speaking during the signing ceremony at the KNCCI headquarters in Nairobi, Richard Ndungu, National Chairperson of the Kenya-China (Asia) Trade and Investment Initiative, said the programme was developed after exporters repeatedly highlighted financing as a major barrier despite securing international buyers.
“Today marks an important milestone in our journey to strengthen Kenya’s export sector. As we engaged exporters and buyers, one challenge was raised consistently—the lack of accessible and structured financing to enable businesses to fulfil export orders, aggregate produce and compete effectively in international markets,” said Ndungu.
He said the Chamber’s Export Committee worked closely with Co-operative Bank to develop a financing framework tailored to exporters’ needs while simultaneously opening new markets across Asia.
Among the products identified for export are coffee, tea, macadamia, avocados, avocado oil, herbs and chillies, all of which continue to enjoy growing demand in Asian markets.
The committee has also coordinated Kenya’s participation in the Food2China Expo 2026 scheduled for September, where several Kenyan exhibitors have already confirmed participation. Earlier this year, members travelled to China to strengthen trade ties, identify buyers and explore new market opportunities.
In a further boost to Kenya-China trade relations, a delegation from the Canton Chamber of Commerce attended the signing ceremony and pledged support for Kenyan businesses seeking to penetrate the Chinese market.
Ndungu revealed that the chamber had offered KNCCI office space in Guangzhou, creating a permanent trade facilitation hub to support exporters and importers.
“The Canton Chamber has expressed its commitment to partnering with us to promote Kenyan products in China and the wider Asian market. They have generously offered to provide us with office space in Guangzhou, which will serve as an important platform for strengthening trade linkages and creating greater market access for Kenyan and Chinese products,” he said.
Under the agreement, Co-operative Bank will provide pre-shipment financing backed by verified Letters of Credit, allowing exporters to finance procurement, grading, processing, certification, packaging and logistics before export payments are received.
The bank will also offer structured trade finance services, including Letter of Credit verification, foreign exchange settlement and export payment facilitation, helping reduce financial risks while boosting confidence among international buyers.
The MoU assigns KNCCI responsibility for sourcing and verifying international buyers, allocating export orders to eligible members and facilitating trade, while the bank will finance export transactions and oversee settlement of proceeds.
Ndungu said the partnership would strengthen agricultural value chains, reduce post-harvest losses and unlock opportunities for small and medium-sized enterprises.
“Many companies had the markets and the products but lacked the financial capacity to execute export contracts. We therefore thank Co-operative Bank for embracing this proposal and partnering with the Chamber to provide a financing framework that will benefit farmers, aggregators and exporters,” he said.
Despite welcoming the initiative, Ndungu challenged government agencies to speed up export certification processes, saying delays continue to undermine Kenya’s competitiveness.
He specifically cited certification requirements by the General Administration of Customs of China (GACC), urging agencies including the Agriculture and Food Authority (AFA) to fast-track approvals.
“Faster and more efficient certification will enable our members to access international markets more competitively,” he noted.
The programme comes as Kenya seeks to diversify export destinations beyond traditional markets and deepen trade ties with Asia. Although China remains one of Kenya’s largest trading partners with growing demand for premium agricultural produce, exporters have long cited financing gaps, certification delays and market access challenges as key constraints.
By integrating market access with trade finance, KNCCI and Co-operative Bank expect the programme to enable exporters to fulfil larger international orders while positioning Kenya as a more reliable supplier to Asian markets.
The MoU, referenced KNCCI/AED/MOU/2026/001, will run for an initial two years with an option for renewal.
Closing the event, Ndungu described the agreement as a practical model for strengthening Kenya’s export sector.
“Today’s signing demonstrates what can be achieved through strong collaboration. The partnership between KNCCI and Co-operative Bank is a practical solution that will empower exporters, strengthen value chains and position Kenya as a reliable supplier to the Chinese market.
