By Chebo Tamanjong, Trade and Investment Analyst
NAIROBI, Kenya, Dec 19 – Over the past decade, the United Arab Emirates has consolidated itself as one of the continent’s most active economic partners. Having focused on North Africa initially, the UAE’s economic engagement with the continent has extended to other regions across the continent. In East Africa, the UAE now plays a decisive role in trade, infrastructure, energy and technology. Particularly, Kenya, Uganda and Tanzania have emerged as priority countries, reflecting both strategic alignment and a growing appetite for long-term investment.
Kenya: a widening economic and technological partnership
Kenya has become one of the UAE’s principal counterparts in East Africa, with bilateral trade reaching 3.4 billion USD in 2023, and positioning the Emirates as the country’s third-largest trading partner. The signing of a Comprehensive Economic Partnership Agreement in January this year marked a step-change, establishing a structured framework for trade and investment expansion.
In April 2024, the Ministry of Investment of the UAE and Kenya’s Ministry of Finance signed an investment memorandum enabling up to $500 million in projects across mining and technology, backed by the Abu Dhabi-based investment and holding company ADQ. The agreement targets mineral exploration, processing, refining and governance improvements, alongside technology transfer and research cooperation. This has been complemented by intensified work on logistics infrastructure.
In May, Etihad Rail and Kenya Railways signed a memorandum of understanding to conduct feasibility studies for the renewal of Kenya’s national rail network and potential participation in the Standard Gauge Railway. The agreement was signed in the presence of President William Ruto, during Sheikh Abdullah bin Zayed’s regional mission to Kenya and Uganda.
Nairobi has also opened discussions with Abu Dhabi on a potential $4 billion loan to expand freight capacity along the Naivasha–Kisumu–Malaba corridor, a strategic link for regional trade with Uganda, Rwanda and South Sudan. At the same time, the UAE has advanced its positioning in Kenya’s digital economy.
A landmark $1 billion partnership between G42, Microsoft and the Kenyan government aims to develop an eco-friendly geothermal-powered data centre in Naivasha. The initiative includes the creation of the East African Innovation Lab in Nairobi, the development of AI models adapted to local languages and annual cybersecurity training for more than 2,000 people, reinforcing Kenya’s role as a technological hub in the region.
Uganda: deepening investment across hydrocarbons, infrastructure and trade
Uganda has experienced a rapid surge in ties with the Emirates, with bilateral trade reaching $2.85 billion in 2024 and the UAE becoming the country’s largest export market, surpassing regional partners such as Kenya and Tanzania. Emirati investment has risen tenfold since 2018, reaching an estimated $3.5 billion.
A defining component of this engagement is the $4 billion refinery project at Kabalega Industrial Park. In March 2025, Dubai-based Alpha MBM Investments and the Uganda National Oil Company concluded a partnership agreement for the construction of a 60,000-barrel-per-day refinery, scheduled for commissioning in 2028. The project, 60 percent owned by Alpha MBM and 40 percent by UNOC, will anchor an industrial zone dedicated to petrochemicals, fertilisers and logistics services, contributing to Uganda’s broader energy security strategy.
High-level political exchanges have reinforced these commitments. Sheikh Abdullah bin Zayed’s visit to Kampala in May 2025 resulted in the signature of six memoranda of understanding spanning infrastructure, capacity-building and diplomatic cooperation, while Etihad Rail signed a separate MoU with Uganda’s Ministry of Works and Transport to support the modernisation of the national railway network, in a ceremony attended by President Yoweri Museveni.
Tanzania: consolidating a diversified Emirati footprint
Tanzania has also become a significant partner, with bilateral trade valued at approximately $3 billion and the UAE surpassing China as the country’s largest foreign investor during the third quarter of 2025. Emirati entities have positioned themselves across energy, logistics, mining and manufacturing.
In 2023, DP World signed a $250 million agreement to operate and modernise the Dar es Salaam port, a project designed to increase throughput capacity and reduce shipping delays on one of the region’s busiest logistics corridors. Investments have extended into energy and industry, with GSG Energies outlining plans in 2024 to channel $500 million into mining, hydrocarbons, transport and manufacturing. Interest has also grown in Zanzibar, where the Khalifa Fund signed a $10 million agreement to support micro, small and medium-sized enterprises, expected to create more than 9,000 jobs in the archipelago.
