KNCCI opens Dubai office to shield Kenyan exporters from fraud, unpaid deals

The Kenya National Chamber of Commerce and Industry (KNCCI) has announced the opening of its Dubai office as part of a broader strategy to protect Kenyan exporters, strengthen trade facilitation, and curb massive losses suffered in the Middle East market.

According to KNCCI President Dr Erick Rutto, the move is a decisive and long-overdue intervention aimed at addressing systemic challenges that have left Kenyan exporters vulnerable to fraud, non-payment, and market exploitation in the United Arab Emirates (UAE).

“The launch of the KNCCI Dubai Office is not ceremonial. It is operational and urgently needed,” Dr Rutto said during the official opening. “It represents our commitment to safeguarding Kenyan exporters in one of our most strategic international markets.”

The UAE is Kenya’s fifth-largest export destination and fourth-largest source of imports. In 2023 alone, Kenyan exports to the UAE were valued at approximately USD 401.5 million. However, Dr. Rutto noted that behind these strong trade figures lies a troubling reality of widespread losses, particularly in the fresh produce and livestock sectors.

In the fresh produce industry, KNCCI estimates that exporters lose an average of three containers every week due to rogue importers in the UAE. This translates to about 156 containers annually, often without any compensation. Unscrupulous buyers reportedly receive goods and disappear, fabricate quality complaints, or issue credit notes that are never honoured, with some operating without verifiable business premises.

The livestock sector faces an even deeper crisis. Between 25 and 30 per cent of livestock exports to the UAE and Saudi Arabia reportedly remain unpaid, resulting in losses of up to Ksh.6 billion annually.

Exporters also incur an additional loss of about Ksh.4,000 per goat due to depressed market prices linked to inadequate disease control measures. As a result, Kenyan goat meat sells at around USD 9 per kilogram in UAE markets, compared to USD 12 for Ethiopian meat.

“When you aggregate losses across these sectors, Kenyan exporters are losing billions of shillings every year,” Dr. Rutto said. “These losses affect farmers’ livelihoods, threaten SMEs, and undermine our export-led growth ambitions.”

KNCCI attributes the crisis to inadequate buyer due diligence, lack of payment protection mechanisms, information asymmetry, and weak cross-border enforcement. Many exporters transact on open credit terms without guarantees, lack access to export credit insurance, and have limited visibility into buyer credibility or UAE regulatory requirements.

The newly launched Dubai office is expected to address these gaps by serving as a frontline support hub for Kenyan businesses. Its mandate includes facilitating safer payment arrangements such as escrow mechanisms, conducting physical verification of buyer credentials, maintaining a shared blacklist of rogue importers, and providing real-time market intelligence on prices, regulations, and opportunities.

The office will also act as a rapid-response centre for payment disputes, working closely with UAE authorities, the Kenya Embassy in Abu Dhabi, Dubai Chamber, and other business organisations to pursue commercial redress.

Dr Rutto placed the initiative within the wider context of Kenya–UAE relations, noting that the two countries have enjoyed strong diplomatic and commercial ties since 1982 and are now implementing the Comprehensive Economic Partnership Agreement (CEPA). Total bilateral trade has reached approximately Ksh.173 billion.