Approved Kenya-EU Trade Deal Paves the Way for Enhanced Economic Partnerships

  • 26 Apr 2024
  • 2 Mins Read
  • 〜 by Shammah Sirima

The National Assembly of Kenya has given the green light, approving the Kenya-European Union (EU) Economic Partnership Agreement (EPA), marking a significant milestone in bilateral trade relations. This trade deal secures access for Kenyan traders to the vast European market, valued at 13 trillion euros, under duty-free and quota-free terms. This comes shortly after a Memorandum of Understanding between Kenya and the Czech Republic was signed, documenting a historical trade relationship with European-based businesses and now with the Regional Body.

Signed in Nairobi last December, the EPA ceremony was graced by President William Ruto and EU Commission President Ursula von der Leyen, signifying the commitment of both parties to fostering mutually beneficial economic ties. Prior to its approval by the Kenyan Parliament, the agreement had already received ratification from the European Parliament, with a resounding endorsement from more than 366 members.

The Kenya-EU EPA unlocks a plethora of opportunities for trade and investment between the two partners. For Kenya, the EU stands as its second largest trading partner and most crucial export market. Notably, the total trade volume between Kenya and the EU surged to 3.3 billion euros in 2022, marking a significant 27% increase over the preceding five years.

Kenya’s exports to the EU, valued at 1 billion euros, predominantly comprise agricultural products such as vegetables, fruits, and flowers, showcasing the country’s prowess in the agro-export sector. Meanwhile, EU exports to Kenya, totaling 2.02 billion euros, span a diverse range of products, including mineral and chemical goods, as well as machinery.

With the approval of the EPA, both Kenya and the EU are poised to deepen their trade and investment cooperation, fostering economic growth and development. Implementation of the agreement will pave the way for enhanced market access, increased bilateral trade volumes, and greater investment flows between the two regions.

As Kenya and the EU embark on this new phase of economic partnership, stakeholders on both sides anticipate tangible benefits, ranging from job creation and enhanced competitiveness to the transfer of technology and know-how. The EPA serves as a testament to the importance of multilateral trade agreements in driving inclusive and sustainable economic development.

The approval of the Kenya-EU Economic Partnership Agreement by the National Assembly underscores the commitment of both parties to fostering a conducive environment for trade and investment. With the agreement now set for implementation, Kenya and the EU are poised to harness the full potential of their economic partnership, ushering in a new era of prosperity and cooperation.