Chinese delegation to Somalia /HANDOUT
China is widening its commercial footprint in East Africa, moving beyond its long-standing focus on infrastructure to pursue opportunities in trade, manufacturing, technology, mobility and finance across one of the world’s fastest-growing consumer and investment regions.
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The shift is particularly evident in Kenya and Somalia, whose strategic Indian Ocean locations have helped strengthen their commercial ties with Chinese companies.
In Somalia, more than 30 Chinese companies and business leaders recently travelled to Mogadishu for a business forum with government officials and local enterprises, where discussions ranged across infrastructure, agriculture, fisheries, energy, communications and other sectors.
The delegation also toured local businesses, including Hayat Market, offering Chinese participants a direct view of Somalia’s consumers, supply chains and wider business environment.
The Mogadishu forum reflects Beijing’s broader effort to build economic relationships across African markets as Chinese companies seek new customers, partners and destinations for investment.
Somalia’s ambassador to China, Hodan Osman Abdi, said the value of such initiatives was measured by their ability to turn diplomatic ties into practical commercial cooperation.
“The best way to change perceptions is through experience, and the best way to build confidence is through real partnerships.”
China’s trade performance shows the industrial strength supporting that overseas expansion.
Chinese exports jumped 25 per cent year-on-year in August 2026, while high-tech exports rose 42.9 per cent, according to Chinese customs data. The country’s trade surplus reached $119.1 billion that month, driven in part by shipments of semiconductors, cars and other technology-intensive products.
For East Africa, this expanding manufacturing base means a growing number of Chinese firms are looking for markets, distribution channels, industrial partners and investment opportunities.
Kenya already ranks among China’s most significant commercial partners in the region.
Figures from the Kenya Ministry of Investments, Trade and Industry show that Kenya imported goods worth $4.31 billion from China in 2024, compared with $3.28 billion in 2023. Kenyan exports to China, by contrast, totalled only $196.56 million in 2024.
The imbalance highlights the size of the bilateral relationship while also pointing to Kenya’s opportunity to attract Chinese capital into local production and value addition.
Chinese goods made up about 22.8 percent of Kenya’s total import bill in the first half of 2025. Imports from China reached Sh304.65 billion, up from Sh257.70 billion in the corresponding period a year earlier, according to KNBS data.
Trade is not the only area where the relationship is expanding.
Kenya is preparing to consider its first panda bond in China’s domestic capital market, with the government aiming to raise about $300 million under its external financing programme for the 2026/27 financial year. Such a transaction would extend Nairobi-Beijing financial cooperation beyond conventional trade and infrastructure funding.
Chinese companies are also showing greater interest in producing goods in Africa instead of relying solely on exports of finished products.
The electric vehicle sector illustrates that change. Chinese automakers are increasing their manufacturing and assembly presence on the continent as demand for cleaner transport grows. Kenya is emerging as a potential hub for EV manufacturing and distribution, while Chinese electric motorcycles and three-wheelers are gaining traction in markets across Africa.
During the first half of 2026, African imports of electric motorcycles and three-wheelers from China rose 60 per cent to $114.6 million, underscoring the market’s rapid expansion. Kenya has already recorded significant adoption of electric motorcycles, supported by developing battery-swapping and assembly businesses.
For Kenya, the central challenge is to capture more of the value generated along that chain.
Instead of serving mainly as an outlet for Chinese manufactured goods, Nairobi can pursue partnerships that establish assembly and manufacturing operations, transfer technology and skills, and use Kenya as a base for regional distribution.
Kenya’s geographic and economic position could also help connect Chinese companies with customers and partners throughout East Africa.
Nairobi’s financial sector, the port of Mombasa, established telecommunications networks and a comparatively developed manufacturing and professional-services base offer foundations for firms seeking to operate regionally.
Somalia’s expanding engagement with China brings an additional market into the picture.
As Mogadishu seeks investment in fisheries, logistics, infrastructure and other productive sectors, Chinese businesses are gaining access to a market of more than 17 million people, while Somalia is looking to strengthen its domestic production capacity.
That process could open doors for Kenyan businesses, too.
As commercial ties between Somalia and China grow, Kenyan logistics companies, banks, insurers, technology providers and manufacturers could take part in the regional supply chains that emerge.
The shift comes as competition for investment across East Africa intensifies.
Chinese businesses are expanding their presence, while the United States, Europe, India and Gulf economies are also pursuing deeper commercial and strategic relationships with the region.
Kenya’s objective, therefore, is not to select one market over another, but to secure greater economic gains from all of its international partnerships.
For China, the attraction of East Africa is straightforward: the region combines growing populations, rapid urbanisation, expanding digital economies and rising demand for infrastructure, consumer products and industrial technology.
Kenya faces an equally distinct opportunity.
Its trade relationship with China is already substantial. The next step is to shift a partnership dominated by imports towards stronger Kenyan exports, domestic production, investment and participation in supply chains linked to China.
The activity in Mogadishu indicates that China’s approach to East Africa is becoming both broader and more commercially focused.
For Nairobi, that creates an opening to present Kenya not merely as another African destination for Chinese goods, but as a platform from which Chinese companies can reach markets and build value across the wider East African economy.
For an investor, a retail store can offer a compact snapshot of an economy. Its shelves show where products come from and what consumers want, while fresh-food counters point to local supply potential and the demands of cold-chain infrastructure.
Electronics sections reveal purchasing habits and technology demand, while payment and delivery systems show how digital tools are reshaping commerce. Together, those details can help visiting businesses assess not only the market in front of them, but also the partnerships and investment opportunities beyond it.
