Kenya and the European Union have made significant strides toward finalizing an Economic Partnership Agreement that will afford the East African nation duty-free status for its exports and unrestricted access to the EU market, officials confirmed on Monday.
Following seven months of negotiations, both parties initialed a draft deal in June, with the EU serving as one of Kenya’s principal export destinations.
The European Union Council’s recent approval of the agreement marks a pivotal step. Subsequently, the agreement will undergo ratification processes in the respective parliaments before it takes effect.
Kenya’s Trade Minister, Rebecca Miano, hailed the agreement’s signing in Nairobi, expressing optimism about the immediate duty- and quota-free access it provides for Kenyan goods in the European market. She also noted the potential for preferential access for European goods to the Kenyan market over time.
With significant exports like tea, coffee, flowers, fruits, and vegetables, accounting for 21% of its total exports, Kenya holds a crucial position as an exporter to the EU. In return, Kenya imports machinery, pharmaceuticals, and other chemicals from the EU.
The bilateral trade between the two entities reached 3.3 billion euros in 2022, according to data from the EU and Kenya governments, solidifying the EU’s status as Kenya’s second-largest trade partner.
While Kenya initially signed a trade deal with the EU in 2016 alongside other members of the East African Community (EAC), subsequent full implementation was hindered as most EAC nations did not sign it.
Now, with the EAC expanding to eight member nations, Kenya’s President William Ruto emphasized the inclusivity of the new deal, extending an invitation for all EAC partners to join.
Given Kenya’s middle-income status, distinct from the EAC’s least developed countries, necessitated its pursuit of a separate arrangement.
EU Commission President Ursula von der Leyen urged the remaining Eastern African countries to consider joining the agreement, highlighting its potential benefits.