Kenya and the European Union (EU) have concluded negotiations on an Economic Partnership Agreement (EPA), which will boost trade and investment between the two partners.
“This agreement brings us closer to Kenya, and it brings Kenya closer to us. Kenya is considered the economic hub of East Africa, and the opening of new areas of cooperation will translate into mutual benefits for our workers, businesses, and traders. The agreement includes a shared commitment to sustainable development, including labour rights, the environment, and climate action,” José Manuel Albares, Spanish Minister of Foreign Affairs, European Union, and Cooperation, said in a joint statement between the Council and the Commission on the adoption of the Council Decision.
The agreement, which was announced on December 12, 2023, will give Kenya duty-free and quota-free access to the EU market for all its exports, including coffee, flowers, and minerals.
In return, Kenya will gradually open its market to more imports from the EU, taking into account its level of development and the need to protect its sensitive sectors.
The EPA is the first and most ambitious trade deal with a developing country to contain strong commitments to sustainability, such as environmental protection, climate action, and labour rights. It also includes a chapter on economic and development cooperation to enhance the competitiveness of the Kenyan economy and support its diversification and industrialization.
The agreement is a significant milestone for Kenya, as it will be the first trade agreement with an East African Community (EAC) country to enter into force.
A regional EPA was negotiated in 2014 and signed by Kenya, Rwanda, and the EU in 2016, but could not be applied as it required signature and ratification by all the EAC countries.
The EU-Kenya agreement implements bilaterally the provisions of the regional EPA and follows a decision by the EAC Heads of State Summit on February 27, 2021. The agreement will be open to accession by the other EAC Partner States.
The EU is Kenya’s second-largest trading partner and Kenya’s most important export market. Total trade between the EU and Kenya reached €3.3 billion in 2022, an increase of 27% compared to 2018.
EU’s imports from Kenya are mainly vegetables, fruits, and flowers, while EU exports to Kenya are mainly mineral products, chemical products, and machinery.
The Economic Partnership Agreement is expected to further increase trade flows and create new opportunities for businesses and consumers on both sides.
The EU and Kenya will now proceed with the signature and ratification of the agreement, which will then enter into provisional application.
The agreement will be fully implemented once it is ratified by the national parliaments of the EU Member States and the Kenyan Parliament.