KENYA has signed an Economic Partnership Agreement with the European Union (EU) securing duty-free access for its agricultural products into its largest export market. The agreement, signed on Monday, will gradually reduce tariffs on European goods entering Kenya over a span of 25 years, according to officials who participated in the signing ceremony held in Nairobi, the capital city.
The negotiations for the deal, which lasted seven months, have been hailed as one of the fastest agreements ever struck by the EU. Kenya, the seventh-largest economy in Africa, is a major exporter of tea, coffee, flowers, fruits, and vegetables, with the EU accounting for 21 percent of its total exports.
In his address, Kenyan President William Ruto said the agreement is not only focused on trade but also aims to stimulate investments and promote manufacturing in the country. He expressed optimism about the potential economic benefits of the partnership.
Kenya had previously signed an initial trade deal with the EU in 2016 as part of the East African Community (EAC) trade bloc. However, most of the EAC countries did not sign the agreement, rendering it ineffective. As Kenya is classified as a middle-income country, it needed to pursue a stand-alone arrangement to ensure continued access to EU markets.
The agreement will now proceed to the respective parliaments of both Kenya and the EU for ratification. Once ratified, it will strengthen trade ties and provide a favourable environment for economic cooperation between the two parties.
Furthermore, Kenya is actively engaged in negotiations for a trade and investment deal with the United States. The country’s trade minister expects this agreement to be signed in 2025, highlighting Kenya’s commitment to expanding its trade relationships and diversifying its export markets.
