A Somali conglomerate’s double win at the SOBA Awards has highlighted the growing shift in Somalia’s business sector from reliance on imports towards local manufacturing, a trend that could reshape Kenya’s trade with one of its key regional markets.
Shakir Group, whose general trading and foam manufacturing arms operate along the Kenya-Somalia trade corridor, received two awards at the seventh Somali Business Awards.
Shakir General Trading was named Best General Trading Company of the Year, while Shakir Foam Factory won the Best Foam Factory of the Year award.
Kenya remains one of Somalia’s major trading partners, exporting cereals, cement, plastics, foam products and other goods to Mogadishu, Kismayo and other Somali markets.
Kenyan businesses have also played a key role in supplying Somalia’s demand for industrial and construction products, with much of the trade moving through the Port of Mombasa and cross-border routes through Mandera and Garissa.
The growth of local manufacturers such as Shakir Foam Factory could, however, create new competition for Kenyan producers that have traditionally supplied the Somali market.
At the same time, the expansion of Somali manufacturing could create opportunities for Kenyan businesses involved in freight, logistics, machinery, raw materials and technical services.
Shakir General Trading’s award reflects the continued importance of the distribution and import business, in which Kenyan exporters, clearing agents and shipping companies remain active suppliers and logistics partners.
The recognition of the group’s manufacturing arm alongside its trading business also points to a diversification among Somali businesses from distribution into local production.
Abdiaziz Ali Ahmed, CEO of Shakir Group, said the awards reflected the company’s progress and the support it had received from its teams, customers and partners.
“We are honored to receive these two national recognitions. They reflect the dedication of our teams, the trust of our customers and the support of our partners,” he said.
He said the recognition would push the group to continue investing and improving its businesses.
“For us, these awards are not simply a celebration of what we have achieved; they are a responsibility to continue improving, investing and building businesses that create lasting value for Somalia,” Ahmed said.
The SOBA Awards, now in their seventh edition, recognise businesses across sectors including trade, manufacturing, technology and services.
The awards are selected by an organising panel and do not disclose turnover, production volumes or employee numbers for the winning companies. The recognition therefore serves primarily as a reputational marker within Somalia’s business community rather than an independently verified ranking of revenue or market share.
For Kenyan businesses, the emergence of a stronger Somali manufacturing base could gradually affect demand for some imported goods.
However, Somalia’s private sector continues to face challenges including unreliable power supply, limited access to formal financing and security-related logistics costs, which could slow the pace of import substitution.
The more immediate opportunity for Kenyan companies could therefore be in partnering with emerging Somali manufacturers by supplying raw materials, machinery and technical expertise as local production expands.
