Kenya has signed an Economic Partnership Agreement (EPA) with the European Union (EU) to boost bilateral trade in goods, increase investment flows, and contribute to sustainable economic growth.
The signing took place during an official ceremony in Nairobi with European Commission President Ursula von der Leyen and President William Ruto present.
President William Ruto said the agreement will boost trade between Kenya and countries in the European Union, adding that Kenya will now enjoy duty and quota-free access to the European market when the agreement is ratified by the European Parliament.
He added that access to the 16 trillion euro market will stimulate the growth of manufacturing, value addition, and entrepreneurship in the country.
Through X (formerly Twitter) Ruto said the ‘partnership will further spur the EU investment to Kenya besides guaranteeing higher earnings for Kenyan products’.
European Commission President Leyen said,
“Kenya is a key partner for the European Union in Africa. The new Economic Partnership Agreement will boost bilateral trade even further, support investments and create good jobs in Kenya.”
She added that,
“This agreement will also contribute to sustainable and fair economic growth, bringing new opportunities for companies, to the benefit of both our people. It includes the strongest social and climate commitments of any EU trade deal with an African country.”
Deputy President Rigathi Gachagua was also present at the signing ceremony along with the Prime Cabinet Secretary Musalia Mudavadi, cabinet secretaries, and governors.
The economic agreement provides a platform to support job creation on both sides, along with targeted cooperation to enhance Kenya’s economic development.
In a statement, the European Commission stated that it is the most ambitious trade deal ever signed by the EU with a developing country when it comes to sustainability provisions such as climate and environmental protection, labour rights, and gender equality.
The EU and Kenya partnership
According to the European Commission, the EU is Kenya’s first export destination and second-largest trading partner, with a total of €3.3 billion in bilateral 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 fully open the EU market for Kenyan products upon entry into force. It will also incentivise EU investment in Kenya thanks to increased legal certainty and stability.
Kenya has played a pioneering role in driving sustainability efforts on the African continent and is a reliable ally in the fight against climate change.
Kenya also co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU and other partners.
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 EPA corresponds to the Commission’s commitment to step up engagement with partners and regions in Africa. The aim is to enhance sustainable trade links between both continents and within Africa itself, thereby meeting key objectives for both the EU-Africa relationship and the green transition.
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