Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui has warned that post-war reconstruction efforts in the Middle East could redirect global financing and development resources away from countries such as Kenya, calling for stronger economic self-sufficiency and resilience.

Speaking during an interview on April 16, 2026, Kinyanjui said global geopolitical instability continues to influence funding priorities and development flows, with potential implications for emerging economies that rely on external financing and trade support.

Global funding shifts

Kinyanjui said reconstruction activities following conflicts in the Middle East are likely to attract significant global resources, potentially affecting funding available to other regions.

“After the war in the Middle East, reconstruction is going to be a major issue. We should not be shocked to see global funding shifting to those affected areas which may in turn affect us as a country hence the need for self sufficiency,” he said.

He noted that Kenya continues to operate in a volatile global environment shaped by supply chain disruptions, high freight costs and fluctuating commodity prices, which have affected export competitiveness.

He added that governments face constraints in planning for external shocks driven by conflicts in different parts of the world.

Trade response

Kinyanjui said the government is pursuing measures to cushion the economy, including financial relief where possible, improved information sharing and expanded market access through trade agreements.

“We are trying to give the best of the situation, and we are trying to give information, financial reprieve and looking at market diversification, and that is why we are trying to sign trade agreements with other countries across the world,” he said.

He revealed that Kenya is expanding diplomatic and commercial engagements, including upcoming trade discussions in Italy aimed at strengthening export opportunities for Kenyan products.

Fuel volatility

The Cabinet Secretary linked global funding uncertainties to broader economic pressures, including fuel price fluctuations that continue to affect multiple sectors of the economy.

He said changes in fuel prices have a cascading effect on transport, production and service delivery, with implications for agriculture, tourism, education and manufacturing.

Kinyanjui said Kenya’s dependence on imported petroleum exposes the economy to external shocks and reinforces the need for diversification of energy sources and increased domestic resilience.

He highlighted ongoing efforts to promote electric mobility, noting growing uptake of electric buses in Nairobi and rising demand for locally assembled units at the Kenya Vehicle Manufacturers plant in Thika.

He added that Kenya’s renewable energy mix, which accounts for a large share of electricity generation, provides a stable foundation for electric mobility and helps reduce exposure to global fuel market volatility.

Kinyanjui said continued investment in trade diversification, energy transition and local production capacity will be key in strengthening economic resilience amid shifting global priorities.