Kenya currently sends roughly one-fifth of all its exports to the EU, its biggest market.
The Kenya government and the European Union on Monday announced the conclusion of negotiations for an economic partnership that is expected to boost trade in goods and services between Kenya and the EU.
The negotiations for an Economic Partnership Agreement (EPA), were concluded during an official ceremony in Nairobi by EU Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and cabinet secretary for trade and investments Moses Kuria, in the presence of President William Samoei Ruto.
EPA is poised to be the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights.
It is also expected to boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development.
Once ratified, the agreement will see Kenyan exports to enjoy duty and quota free market access to EU as well as secure a market for Kenyan farmers and boosts their income potential.
The EU will also encourage private sector to invest in Kenya to help stimulate job creation in the manufacturing sector, in industries such as chemicals, steel, pharmaceuticals, machinery and other related products.
The agreement is set to help champion for the implementation of the provisions the EU-East African Community (EAC) EPA, and it will be open for other EAC countries to join in the future.
The deal comes at a moment when EU has over the last couple of months become Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 – an increase of 27% compared to 2018.
The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability.
Kenya has a pioneering role in sustainability efforts on the African continent and is a reliable ally in the fight against climate change.
It co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU, Ecuador and New Zealand.
The EU-Kenya EPA builds on this strong track record and is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected.
The deal contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment and the fight against climate change.
“This is a balanced agreement, taking into account Kenya’s development needs by allowing it a longer period to gradually open its market, safeguards for agriculture, and protection of its developing industry,” said a statement released by EU after the signing of the agreement.
“A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy.
“Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides,” it added.
The EPA is now expected to go through legal revision and scrubbing and then be translated before the Commission submits it for signature and conclusion to the Council.
Once adopted by the Council, the EU and Kenya can sign the agreement. Following the signature, the text will be transmitted to the European Parliament for consent.
The parties may then decide to provisionally apply parts of the agreement, the agreement enters fully into force once Kenya and the EU member states also ratify it.
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