Kenya, EU ink ‘historic’ trade deal

Kenya and the European Union formalized a landmark trade deal on Monday, solidifying efforts to enhance economic ties. The Economic Partnership Agreement grants Kenya duty-free and quota-free access to the EU, its primary export destination, while European goods will experience phased tariff reductions.

This agreement marks the EU’s first comprehensive trade deal with an African nation since 2016, amid China’s substantial investments in infrastructure projects across the continent.

Kenyan President William Ruto, speaking at the ceremony attended by European Commission chief Ursula von der Leyen in Nairobi, emphasized the transformative potential of this historic partnership. Ruto stated, “Although today represents a moment of monumental promise, it is also the beginning of a historic partnership for historic transformation. The core of this arrangement is to put real money into the pockets of ordinary people.”

Von der Leyen echoed the sentiment, calling the partnership a “win-win situation on both sides” and urged other East African nations to join the pact. The deal, finalized after years of negotiations that concluded in June, aims to deepen trade ties and enhance economic resilience.

Both the Kenyan and European parliaments must ratify the agreement before it takes effect. The EU highlighted this deal as its “most ambitious economic partnership” with a developing country, encompassing commitments to sustainable development in areas like labor rights and environmental protection.

The EU, strategically countering China’s Belt and Road program, expressed its commitment to increasing investments in Kenya through the Global Gateway initiative. This trade milestone follows a decade of negotiations between the EU and the regional East African Community (EAC). The EU-Kenya agreement invites other EAC nations to join, fostering regional benefits.

Notably, the EU constitutes over 20 percent of Kenya’s total exports, primarily in agricultural products such as vegetables, fruits, tea, and coffee. The two-way trade between the markets reached 3.3 billion euros ($3.6 billion) in 2022, marking a 27 percent increase since 2018. As both parties look ahead, the focus now shifts to the crucial phase of ratification and subsequent implementation.