Kenya and the European Union (EU) have finalized a trade deal aimed at safeguarding Kenyan exports and boosting economic growth.
The Economic Partnership Agreement, signed on Monday, ensures duty-free access for Kenya’s agricultural products in its largest export market, the EU. Meanwhile, tariffs on European goods entering Kenya will be gradually reduced over a span of 25 years.
Officials from both sides expressed satisfaction with the agreement, which was achieved after seven months of negotiations, making it one of the fastest deals ever struck by the EU.
Kenya, known as Africa’s seventh-largest economy, heavily relies on exports such as tea, coffee, flowers, fruits, and vegetables, with the EU accounting for 21% of its total exports.
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Beyond the immediate benefits to trade, President William Ruto highlighted the agreement’s potential to stimulate investments and manufacturing in Kenya.
The deal builds upon an initial trade agreement signed in 2016 with the EU and the East African Community (EAC) trade bloc, although it did not come into full effect due to non-participation by most EAC countries. As Kenya is classified as a middle-income nation, it pursued a separate arrangement.
The trade deal will now undergo the ratification process in the parliaments of both Kenya and the EU. In addition to this agreement, Kenya is currently engaged in negotiations for a trade and investment deal with the United States, with expectations that it will be signed next year, according to the country’s trade minister.
