NAIROBI, Kenya — Kenya’s exports will now enter the European Union’s 27-member market duty-free, thanks to the EU-Kenya Economic Partnership Agreement (EPA) which came into effect on July 1, 2024.
This monumental agreement grants Kenyan products access to a market of 500 million consumers, with Kenya gradually opening its markets to EU products over the next 25 years.
In a statement on Monday, Rebecca Miano, Kenya’s Cabinet Secretary for Investments, Trade, and Industry, confirmed the EPA’s activation.
“The agreement will boost bilateral trade in goods, increase investment flows, strengthen the ties between reliable partners, and facilitate mutually advantageous economic relations sustainably, stimulating job creation and economic growth,” Miano stated.
Under the EPA, Kenya’s key exports, including coffee, flowers, and minerals, will benefit from duty-free, quota-free access to the EU market.
This move is expected to significantly enhance Kenya’s export potential and economic growth.
According to Miano, the EU-Kenya EPA is the most ambitious deal of its kind negotiated with an African country.
It includes binding provisions on labor issues, gender equality, environmental protection, and climate change mitigation, setting a benchmark for future sustainable trade agreements.
Kenya, the economic hub of East Africa, stands to unlock substantial economic opportunities through this agreement.
The EU is already Kenya’s largest export destination and its second-largest trading partner. In 2023, total trade between the EU and Kenya reached €3 billion (Sh415.8 billion), marking a 16 percent increase since 2018.
The Economic Survey 2024 by the Kenya National Bureau of Statistics noted a 12.7 percent increase in the value of exports to the EU in 2023, driven by higher domestic exports of cut flowers, avocados, and beans. More than 70 percent of Kenya’s flower production is destined for the European market.
The EPA is anticipated to create more opportunities for Kenyan businesses and exporters by providing full access to the EU market and attracting EU investment due to increased legal certainty and stability.
In 2023, Kenya’s exports to the EU primarily included coffee, cut flowers, tea, and vegetables, while imports from the EU mainly comprised machinery, mechanical appliances, vehicles, and pharmaceutical products.
In the same period, Kenya imported products worth €2 billion (Sh306 billion) from the EU, with two-way trade growing by about 25 percent since 2019.
The EU-Kenya EPA, concluded in June 2023 and signed on December 18, aims to implement provisions of the broader EU-East African Community (EAC) EPA.
This agreement remains open to other EAC countries, potentially paving the way for regional economic integration and growth.
