President William Ruto has outlined a comprehensive strategy to tackle youth unemployment by focusing on value addition, agro-processing, and international trade opportunities, including a new bilateral agreement with China to boost agricultural exports.
Speaking at the 1st Murang’a Investment Conference, President Ruto acknowledged that unemployment—especially among the youth—remains a pressing national challenge.
“We have a challenge of unemployment in Kenya. We have many young people who are looking for opportunities for work. And we have to be intentional. We have to be deliberate as to where we are creating the jobs,” he said.
To address this, the president identified agro-processing and value addition as key pillars of job creation. He revealed that his administration is working to expand special economic zones (SEZs), not just in Murang’a, but in at least six other regions.
“One of the critical areas is value addition and agro-processing. That is why I envisioned special economic zones—not only in Murang’a but in six other locations across the country—so we can shift from exporting raw produce to adding value locally,” he explained.
The head of state added that county governments are playing a vital role in operationalising SEZs and developing county aggregation and industrial parks to boost local manufacturing and employment.
“This conference comes at a pivotal time, as Kenya integrates county-level investment promotion into its broader foreign engagement strategy. A key milestone is the EU-Kenya Economic Partnership Agreement, which allows duty-free, quota-free access to the European market,” Ruto added.
The president also highlighted trade negotiations with China aimed at correcting the imbalance in trade between the two countries. He revealed that Kenya imports goods worth Ksh.600 billion from China, while only exporting Ksh.40 billion in return.
“When I went to China three months ago, I told the president of China that we must address this imbalance,” Ruto said, announcing that Kenya is already sending a team to China to finalise a bilateral trade agreement.
“The good news is that China has agreed to a bilateral trade deal that will see the removal of all tariffs on Kenyan products. It is my expectation that by September or latest October, we should have an agreement in place to expand our market for avocados, macadamia, tea, coffee, and other produce to China’s one billion consumers,” he stated.
The potential trade deal comes amid broader Chinese efforts to deepen economic ties with Africa. Beijing recently announced plans to eliminate all tariffs on imports from the 53 African countries it maintains diplomatic relations with, a move expected to benefit emerging economies like Kenya.
“China is ready to welcome quality products from Africa into its market,” China’s foreign ministry said after a high-level meeting with African officials in Changsha.
Despite growing trade volumes, China’s trade with Africa remains heavily imbalanced, with Beijing recording a trade surplus of Ksh.8 trillion last year. Analysts, including the founder of Development Reimagined, have warned that unless African exports rise significantly, the gap will continue to widen.
However, the tariff elimination pledge, alongside China’s commitment of Ksh.6.4 trillion in credit and investment to Africa over the next three years, is seen as a promising development for countries seeking to export more finished goods rather than raw materials.
President Ruto remains optimistic that through a combination of strategic local investments and targeted trade agreements, Kenya can create sustainable jobs and improve its economic competitiveness on the global stage.
