Kenya and the European Union (EU) are strengthening their trade ties through the Kenya-EU Economic Partnership Agreement (EPA), with both government and private sector stakeholders working to diversify export products and boost the country’s economy.
Speaking at a recent sensitization workshop on the EPA, Alfred K’ombudo, Principal Secretary at the State Department for Trade, emphasized the EU’s significance as one of Kenya’s largest trading partners. The EU, a market valued at USD 16 trillion, absorbs over 21% of Kenya’s total exports each year. In 2023, Kenya’s exports to the EU reached USD 1.07 billion, while imports from the EU totaled USD 1.6 billion, reflecting a narrowing trade imbalance.
Kenya’s exports to the EU primarily consist of agricultural products like cut flowers, coffee, tea, spices, edible fruits, and nuts, while imports include capital goods such as machinery, pharmaceuticals, and motor vehicles. The Kenya-EU EPA, which was signed in December 2023, ratified in April 2024, and entered into force in July 2024, grants Kenyan products duty-free and quota-free access to the EU market, in line with EU market requirements.
To maximize these opportunities, the State Department for Trade has partnered with organizations such as the EU, Danish Industry (DI), Kenya Association of Manufacturers (KAM), and other business and manufacturers’ organizations (BMOs) to conduct sensitization campaigns across Kenya.
These workshops, which have already been held in regions including Nakuru, Kirinyaga, Eldoret, Machakos, Isiolo, Mombasa, and Kisumu, aim to raise awareness of the benefits the EPA offers and how businesses can leverage it for growth.
Additionally, the State Department for Trade is working on a National Kenya-EU EPA implementation strategy, which will outline key priorities, financial and non-financial support needed, and the responsibilities and timelines for successful execution. The strategy will guide Kenyan industries in maximizing the trade opportunities the EPA provides, particularly for agricultural products, manufactured goods, and the fisheries and livestock sectors.
EU Ambassador to Kenya, Henriette Geiger, highlighted the importance of adding value to Kenya’s exports to move towards the goal of becoming an upper-middle-income country. Geiger stressed the need to focus not only on agriculture but also on high-value sectors like the creative and digital industries, which are growing rapidly in Kenya due to the country’s youthful and tech-savvy population.
Looking ahead, Ambassador Geiger noted that the EU is exploring the possibility of a services agreement with Kenya, which would create further opportunities for growth, particularly in addressing youth unemployment, with one million young people entering the job market annually. The EU is committed to promoting sustainable trade practices that encourage climate-friendly production and transportation, while also creating decent jobs, with a focus on empowering women.
The Kenya-EU EPA is set to be a pivotal tool in diversifying Kenya’s exports and accelerating the country’s economic growth.