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Kenya Secures 98.2pc Duty-Free Access to Chinese Market in New Trade Deal

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NAIROBI, Kenya — Kenya has secured 98.2 percent zero-duty access to the Chinese market for its exports following bilateral trade negotiations aimed at correcting long-standing trade imbalances with Africa’s largest trading partner.

In a statement released on Thursday, the Ministry of Investments, Trade and Industry said the agreement follows sustained engagements with Beijing after China announced duty-free and quota, free (DFQF) market access for African goods, a framework that primarily benefited Least Developed Countries (LDCs), excluding developing economies such as Kenya.

Cabinet Secretary Lee Kinyanjui said Kenya initiated targeted negotiations to ensure fair treatment for its exporters, particularly within the East African Community (EAC), whose member states face uneven access under the DFQF arrangement.

“We have initiated discussions with China to negotiate a bilateral trade agreement that aligns Kenya with the privileges enjoyed by our East African Community neighbours and other African nations,” the statement said.

The talks culminated in a preliminary agreement granting zero-duty access on 98.2pc of Kenyan goods, a move the ministry described as a major breakthrough in Kenya-China trade relations.

“This early harvest framework is a monumental progression that signifies China’s commitment to strengthening our trade ties further,” the statement said.

Boost for exporters and jobs

The ministry said the zero-duty arrangement is expected to unlock new export opportunities, particularly in the agricultural sector, which remains the backbone of Kenya’s economy.

“This development is expected to generate considerable employment opportunities and bring tangible benefits to our economy,” the ministry said.

Kenya’s key agricultural exports — including tea, coffee, avocados, macadamia nuts, and horticultural produce — have faced tariff and non-tariff barriers in major markets, limiting growth despite rising production.

Economists say preferential access to China’s vast consumer market could significantly improve Kenya’s trade balance, which has historically tilted in Beijing’s favour due to heavy imports of manufactured goods.

Lee Maiyani Kinyanjui, Cabinet Secretary in the Ministry of Investments, Trade and Industry.
Lee Maiyani Kinyanjui, Cabinet Secretary in the Ministry of Investments, Trade and Industry.

Trade imbalance concerns

The government said expanding exports is part of a broader strategy to reduce dependency on imports while strengthening domestic production capacity.

“The Government of Kenya remains committed to pursuing opportunities that enhance our trade capabilities and strengthen partnerships on the world stage,” the statement said.

Kenya said it expects the agreement to complement regional trade objectives and improve livelihoods through export-led growth.

“We look forward to the positive impacts of this agreement on our economy and the well-being of our citizens,” the statement concluded.

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