The Kenyan Government, led by President William Ruto, has inked a pivotal Economic Partnership Agreement (EPA) with the European Union (EU), opening up boundless trade opportunities for Kenya in the world’s largest export market.
The EPA, signed in a ceremony attended by President Ruto and EU Commission Chief Ursula Von Der Leyen in Nairobi, solidifies Kenya’s position to trade certain listed products with unrestricted access and duty-free benefits.
President Ruto emphasized the agreement’s central goal, stating, “At the core of this arrangement is our aspiration to put real money into the pockets of ordinary people: farmers, craftsmen and women, fabricators, transporters, and various other kinds of workers who contribute to the manufacturing, intercontinental transport and last-mile delivery to consumers of various products that are a subject of the signing of this agreement.”
Under the terms of the EPA, Kenya commits to progressively opening its market to products from the EU, fostering a reciprocal economic relationship between the two entities.
The European Union stands as Kenya’s second-largest trading partner, marking it as the primary destination for Kenyan exports. In 2022 alone, trade deals between Kenya and the EU reached an impressive 552 billion Kenyan Shillings ($3.6 billion), showcasing a remarkable 27% increase from the previous year.
The EPA is poised to come into effect upon ratification by both the Kenyan and EU parliaments. While the deal was originally intended for members of the East African Community (EAC), its adoption faced a setback in 2014 when all EAC member nations, except Kenya, chose to boycott the agreement. Kenya’s decision to move forward independently positions the nation to harness the economic benefits of unrestricted trade with the European Union.
