India and Kenya have explored the possibility of conducting trade transactions in local currencies as part of efforts to further boost bilateral commerce, according to an official statement released on Wednesday.
The two sides also held discussions on digital public infrastructure, including collaboration on UPI-like payment systems, Bharat Connect, and other digital tools aimed at strengthening financial inclusion and improving coordination between officials of both nations.
These matters were taken up during the India-Kenya Joint Trade Committee meeting held on April 27–28 in Nairobi. The meeting was co-chaired by Commerce Secretary Rajesh Agrawal and Principal Secretary, State Department for Trade, Kenya, Regina Akotah Ombam.
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“Both sides recognised the potential for promoting trade settlement in local currencies. The possibility of adopting a Local Currency Settlement (LCS) mechanism was also discussed,” the Commerce Ministry said. It was also highlighted that Kenyan banks have opened Special Rupee Vostro Accounts (SRVAs) with Indian banks, and increased use of this mechanism could help enable smoother bilateral transactions.
The discussions further focused on expanding trade diversification, resolving market access challenges, and leveraging complementarities in sectors such as engineering goods, pharmaceuticals, agriculture, and electronics.
An MoU was also signed between the Central Board of Indirect Taxes and Customs (CBIC) and the Kenya Revenue Authority (KRA) for the exchange of pre-arrival customs information, with the aim of streamlining procedures and enhancing ease of doing business.
Bilateral trade between the two countries reached USD 4.31 billion in 2025–26, marking a growth of 24.91 per cent compared to USD 3.45 billion in 2024–25.
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