Why Somaliland could be Kenya's next big market

Somaliland Mission in Kenya, Runda, Nairobi on May 29, 2025. [Boniface Okendo, Standard]

As global investors increasingly look beyond traditional markets, Somaliland is emerging as a compelling frontier, stable, open and full of promise.

For Kenyan businesses seeking new opportunities, Somaliland offers not just potential, but also partnership.

At our Mission in Nairobi, we have placed economic diplomacy at the heart of our work. We are actively pursuing investment opportunities in areas where Somaliland's natural advantages meet Kenya's proven capabilities: Renewable energy, mining, agriculture, fishing, and banking. These are not theoretical ambitions; they are active sectors where Kenyan firms are already present, growing and leaving their mark.

Take renewable energy. Somaliland enjoys abundant sunshine throughout the year and with vast off-grid demand, it is a fertile ground for Kenyan companies that have built expertise in solar infrastructure.

Mining is another sector long under-explored. Our gypsum, limestone, and other minerals are attracting growing interest, and our government has made transparency and investor protection the cornerstones of our licensing regime.

Agriculture and fishing remain the backbone of Somaliland's rural economy where Kenyan innovation is making its mark too. Agribusinesses are introducing climate-smart practices, while fishing cooperatives are finding new markets through partnerships with Kenyan processors. In banking, Kenyan financial institutions are helping transform a remittance-driven economy into one that is increasingly inclusive and digitally enabled.

These are not isolated cases. Today, more than 17,000 Kenyan workers are employed in Somaliland. From engineers, teachers, and hoteliers to logistics and education, Kenyan professionals are helping build Somaliland's future.

And Kenyan companies, from SMEs to established brands, are also expanding their footprint, mostly drawn by our peace, predictability, and pro-business environment.

A key enabler of this momentum is the Berbera Port. Once modest, it is now one of the Horn of Africa's most modern gateways, thanks to the strategic investment by DP World. Its expanded capacity, digitised operations and direct access to the Red Sea has transformed Berbera into a regional logistics hub that is capable of serving not only Somaliland but Ethiopia, South Sudan, and beyond.

But Berbera's full potential will only be realised when it is properly connected to Kenya's infrastructure corridors, particularly the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor and the Mombasa-Nairobi axis. These connections would create a seamless trade route linking Kenyan producers to Somaliland's markets and vice versa, reducing costs, boosting volumes, and strengthening regional integration.

Imagine a trade route where Kenyan exports reach Berbera in days, not weeks. Where Somaliland seafood and livestock arrive fresh in Nairobi. Where Kenyan banks and logistics firms operate seamlessly across both countries. This is within reach if governments, the private sector, and regional actors work together.

As an Ambassador, I regularly meet Kenyan business leaders, and I can assure you: Somaliland does not just welcome investment, we facilitate it.

Our Mission assists with due diligence, regulatory navigation, and local partnerships. We understand Kenyan firms, and we want their entry into our market to be smooth, secure, and sustainable.

Some may point out to Somaliland's lack of diplomatic recognition yet. But our lack of recognition on paper has not stopped our economic reality.

We have a stable currency, expanding ports and democratic governance anchored in accountability. We have held multiple peaceful elections, maintained internal security and built institutions that work and serve our people. In practice, Somaliland is not just viable; it is a strategic gateway to the Horn of Africa.

The time to invest in Somaliland is now. Kenya, with its entrepreneurial spirit, regional leadership and growing appetite for cross-border trade, is perfectly positioned to lead the way. Together, we can build a corridor of prosperity anchored in trust, driven by commerce, and sustained by shared growth.

Somaliland is open for business. Kenya is not just a neighbor, it is a partner.

- The writer is Ambassador of the Republic of Somaliland to Kenya