THE Kenyan Minister for Trade, Investments and Industry, Moses Kuria, has had his first meeting with his British counterpart under the UK-Kenya Economic Partnership Agreement (EPA) aimed at securing jobs, increasing economic growth and supporting agricultural development and manufacturing in Kenya.
The EPA, the first trade agreement Kenya has struck with a partner outside Africa, was signed in December 2020 and came into force in March 2021.
UK-Kenya trade is currently worth £1.1 billion annually.
Kuria was in London this week where he met UK Minister for International Trade, Nigel Huddleston at the first UK-Kenya Economic Partnership Council, which will meet every two years.
Both parties agreed to speed up work to remove barriers affecting bilateral trade and investment, working with their respective public and private sectors.
They also discussed the £3.5 billion of green investment deals, which UK Prime Minister Rishi Sunak and President William Ruto agreed to fast track at COP27.
The EPA ensures that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market – saving exporters over £10 million every year in duties on products such as green beans and cut flowers.
Kenya will also gradually reduce duties on UK products deemed non-sensitive, providing Kenyan businesses with cheaper inputs which can support agricultural development and manufacturing.
It does this by gradually phasing out tariffs across the majority of UK exports, covering sectors including machinery and pharmaceuticals.
The agreement supports Kenya to grow its economy by providing UK businesses with increased trade opportunities that will, in turn, secure jobs for Kenyans and strengthen the country’s global trade competitiveness and the ability to attract investment.
The EPA has benefited about 2,500 UK businesses exporting goods to Kenya each year, with
British companies in Kenya employing more than 250,000 Kenyans.
Given that the EPA also supports the UK-Kenya Strategic partnership – an ambitious five-year agreement that includes job creation and economic growth – the Ruto government could well be banking on it to meet election promises relating to these sensitive issues.
‘But Ruto is not being allowed to get on with the job of making life better for ordinary Kenyans, with the continued opposition demonstrations in the country over the result of the presidential election in August last year,’ a Kenyan academic told Africa Briefing.
‘These unwanted disruptions could stall the government’s economic development plans, which won’t be good for the country, as the global economy is currently under enormous strain.
‘Let’s hope that Kenyans soon see sense and stop playing sectional politics that won’t get the country anywhere at this rate.’