Duty-free status: Kenya, EU sign deal to boost bilateral trade

Kenyan government has signed an economic partnership agreement (EPA) with the European Union (EU) to enable the East African nation enjoy duty-free status and unlimited access to the bloc.

The deal was approved by the European Union Council last week and will now be presented to the parliaments of both sides for ratification before it comes into force.

Kenya and EU initiated a draft deal in June after seven months of negotiations.

Speaking on Monday at the signing ceremony in Nairobi, Rebecca Miano, Kenya’s trade minister, said the agreement “heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access to the European market”.

“Over time, European goods will also gain preferential access to the Kenyan market,” Miano said.

Commenting on the gesture, President William Ruto said the East African Community (EAC) has expanded to eight member nations, who will all be welcome to join the new deal.

“This agreement that we are signing today leaves the door open, and I say, wide open, for our EAC partners to join,” Ruto said.

Ursula von der Leyen said the new EPA will boost bilateral trade even further, support investments and create good jobs in Kenya. 

“We encourage the other Eastern African countries to join,” Leyen said.

The EU is one of Kenya’s biggest export markets.

Kenya is a major exporter of tea, coffee, flowers, fruits and vegetables to the EU, which accounts for 21 percent of its overall exports.

In 2016, Kenya initiated a trade deal with the EU alongside its partners in the then six-member nation East African Community trade bloc.

However, the deal was not signed by most of the EAC countries, so it did not fully come into effect.