Kenya, Sweden deepens bioeconomy collaboration to build local innovation capacity

Kenya’s push to build a self-sustaining bioeconomy has gained new momentum, with Sweden backing efforts to localise research, scale innovation, and empower enterprises to turn science into sustainable business.

This came during a workshop in Nairobi bringing together representatives from the Ministry of Industry, Trade and Investment (MITI), the National Commission for Science, Technology and Innovation (NACOSTI), the Kenya Private Sector Alliance (KEPSA), the Stockholm Environment Institute (SEI), local entrepreneurs, and Business Sweden.

The event acted as a preparatory session for the Kenya–Sweden Bioeconomy Business and Innovation Fair scheduled for December 8th and 9th, 2025.

This follows a similar event held on August 28, 2025, in Kenya to intensify efforts to develop its bio-economy. It provided a comprehensive mapping exercise and cluster formation process.

It helped in aligning strategies, sharing insights, and strengthening partnerships under the Advancing Bioeconomy Development in Kenya (ABDK) project.

The ABDK project, implemented by the Stockholm Environment Institute (SEI) with funding from the Swedish International Development Cooperation Agency (Sida aims to generate evidence for new business opportunities, support policy engagement, and foster collaboration between Kenyan and Swedish bioeconomy actors.

Co-creation and technology transfer

Speaking during the session, Niall O’Connor, Regional Director for SEI Africa, said Sweden’s approach was grounded in co-creation rather than aid, emphasising that the partnership aims to unlock innovation within Kenya’s institutions rather than import ready-made solutions.

“This collaboration is not about Sweden transferring technology and walking away. It is about building shared research platforms, piloting technologies within Kenyan contexts and strengthening institutions that can sustain them,” O’Connor said.

He noted that SEI has been working closely with NACOSTI and MITI to identify pilot sites where science-based innovations can be tested, scaled, and integrated into local production systems, particularly in agriculture and waste management.

“What we are co-creating is an enabling environment, from research labs to policy frameworks that allows Kenya’s bioeconomy to thrive on its own terms,” he added.

O’Connor highlighted that the Swedish-funded collaboration will channel investments into research-commercialisation linkages and facilitate knowledge exchange between Kenyan and Swedish universities and innovation hubs.

Business partnerships and local manufacturing

From the business front, Winfred Kiarie, Consultant at Business Sweden, said Swedish companies are ready to collaborate with Kenyan firms through technology partnerships, circular economy projects, and capacity-building initiatives that link sustainability with commercial growth.

“Swedish businesses see Kenya not just as a market but as a partner in developing solutions that work for Africa,” Kiarie said.

“We are exploring co-investments in renewable energy, sustainable agriculture, and waste-to-value initiatives, areas where Swedish technology and Kenyan entrepreneurship can meet in the middle.”

She added that Business Sweden is working with MITI to create a matchmaking platform that connects Kenyan small and medium enterprises (SMEs) with Swedish firms in bio-based manufacturing, thereby supporting local value addition.

“Our focus is on knowledge transfer, joint ventures, and local manufacturing, not imports. The idea is to empower Kenyan enterprises to produce, adapt, and export within the African Continental Free Trade Area,” she noted.

Government involvement

Representing the Kenyan government, Stanley Koske, a representative from MITI, said the bioeconomy strategy is a pillar of Kenya’s industrial transformation agenda, linking sustainable resource use with inclusive growth.

“We are moving from policies that simply conserve to policies that create jobs and industries,” Koske said.

“Our goal within the next 1 year is to establish clear policy instruments that bring together government, academia, and industry to build a thriving bioeconomy.”

Koske said MITI is working to provide an enabling environment, infrastructure, standards, and policy certainty so that innovators, SMEs, and researchers can take the lead.

Science and research linkages

From the science and research perspective, Rael Odhiambo, from NACOSTI, said the collaboration with SEI and Business Sweden aligns with Kenya’s Science, Technology, and Innovation (ST&I) policy, which seeks to translate research into tangible socio-economic outcomes.

“We have reached a turning point where science must move beyond the lab into the marketplace,” Odhiambo said.

“Our partnership with SEI and Swedish agencies will help us operationalise the bioeconomy strategy through knowledge-sharing, research grants, and joint innovation challenges.”

She noted that NACOSTI is prioritising the creation of local innovation clusters that link universities, research centres, and county-level industries, ensuring that scientific discoveries reach communities that can apply them for livelihood improvement.

Private sector inclusion and SME empowerment

The private sector perspective came from Levi Injendi, SME Trade and Investment Officer at KEPSA, who underscored the need for Kenya’s small businesses to be fully integrated into the bioeconomy transition.

He said KEPSA’s 20-year experience as a bridge between government and industry positions it to help SMEs access financing, skills, and market linkages.

“Policies must serve businesses of all sizes, not just large corporations,” Injendi said.

“At KEPSA, we see bioeconomy not as an abstract concept but as a commercial frontier, one that can generate value from waste, improve food systems, and create new green jobs.”

He added that KEPSA is running several SME-focused initiatives, including a subsidised credit facility under the MasterCard partnership offering loans of up to Sh14 million at an interest rate of 9.7 per cent, and an Innovation Challenge that supports grassroots innovators with seed capital and mentorship.

“The future of Kenya’s bioeconomy depends on how we prepare our SMEs, equipping them with the right financial, digital, and innovation skills. That’s how you build local capacity sustainably,” he said.

Challenges and gaps

While the collaboration has shown progress, Mirriam, an entrepreneur from Baringo, acknowledged ongoing challenges, including inadequate financing for start-ups, a fragmented policy framework, and limited infrastructure to support large-scale bio-based production.

She also noted certification barriers, slow regulatory processes, and the need for greater alignment between industrialisation and environmental policies to prevent overlaps and bottlenecks.

Injendi also highlighted gaps in access to technology and innovation ranking, noting that Kenya had fallen in the Global Innovation Index from position 86 to 139, largely due to underinvestment in research despite strong entrepreneurial output.

“We are still an innovative nation, but we must invest more intentionally in R&D and market awareness so that local entrepreneurs can compete globally,” he said.

The forum concluded with a joint commitment between the Kenyan and Swedish partners to develop a roadmap for pilot bioeconomy projects in 2025, focusing on circular waste systems, green financing models, and SME innovation hubs.

“Kenya has the raw innovation energy. Sweden brings decades of experience in bio-based systems and the green industry. Together, we can create something uniquely African, a bioeconomy that builds prosperity from sustainability,” O’Connor said.