Kenya’s access to EU market enhanced after trade deal takes effect

KENYA – Kenya and the European Union (EU) have officially implemented the EU-Kenya Economic Partnership Agreement (EPA), marking the first trade deal between the EU and a developing country.

The EPA ensures unrestricted access for Kenyan goods to the European market. This includes key exports such as horticultural products, tea, and coffee.

Rebecca Miano, Kenya’s Cabinet Secretary for Investment, Trade, and Industry, described the agreement as one of the most ambitious negotiated by the EU with an African country, aiming to promote economic sustainability and cooperation in commerce and development.

“The EU-Kenya EPA is a template for other African countries to adapt,” Miano stated.

The agreement allows Kenya to gradually open its market to duty-free EU goods over 25 years. It includes protections to prevent the EU from flooding the Kenyan market with subsidized agricultural exports, thus safeguarding the local agricultural sector.

The EU welcomed the agreement, highlighting its potential to boost bilateral trade, increase investment flows, and foster mutually beneficial economic relations.

“The agreement will strengthen the ties between reliable partners, stimulating job creation and economic growth,” the EU noted in a statement.

Kenya has committed to providing specific incentives for EU members to invest in the Kenyan market. This commitment underscores Kenya’s potential as a preferred investment destination in Africa.

Market analysts anticipate the EPA will favor the EU, which exported goods worth KES 223.12 billion (USD 1.7 billion) to Kenya in 2023 while importing goods worth KES 150.8 billion (USD 1.2 billion).

The EPA’s enforcement follows formal approval from the EU’s parliament on February 29, concluding nearly a decade of negotiations. The current agreement is a modified version of the EU-East African Community (EU-EAC) pact first developed in 2014.

The formal signing ceremony in December 2023, attended by European Commission President Ursula von der Leyen and Kenyan President Dr. William Samoei Ruto in Nairobi, highlighted the collaborative effort to promote job creation and foster Kenya’s economic growth.

Von der Leyen emphasized, “This trade deal stands as the most ambitious pact signed by the EU with a developing country, embedding robust sustainability measures encompassing climate and environmental protection, labor rights, and gender equality.”

A milestone for the fresh produce sector

The EU remains Kenya’s primary export destination and second-largest trade partner, with bilateral trade reaching EUR 3.3 billion (USD 3.61 billion) in 2022, a 27% increase since 2018.

The agreement is particularly beneficial for Kenya’s fresh produce sector. Okisegere Ojepat, CEO of the Fresh Produce Consortium of Kenya, stated, “This signals Kenya’s commitment to exporting premium products to Europe, further fortifying the relationship between Kenya and the EU.”

The Kenya Flower Council celebrated the agreement, noting it ensures duty-free, quota-free access for Kenya’s cut-flowers, ornamentals, fruits, and vegetables in the EU market.

This provision supports Kenya’s competitive edge in the agricultural sector and contributes to the country’s economic growth.

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