Kenya, EU seal historic trade pact for economic boost

Kenya and the European Union has inked a groundbreaking Economic Partnership Agreement.

This agreement on Monday is aimed at fostering increased trade dynamics and heightening economic collaboration.

The pact grants Kenya duty-free access to the EU, its largest export market, while European goods enjoy progressive tariff reductions.

Kenyan President William Ruto, marking the occasion as a “moment of monumental promise,” emphasized the historic nature of the partnership at the ceremony attended by European Commission chief Ursula von der Leyen in Nairobi.

Ruto declared, “The core of this arrangement is to put real money into the pockets of ordinary people.”

EU chief von der Leyen echoed the sentiment, labeling the partnership a “win-win situation on both sides” and urging other East African nations to consider joining this transformative pact, which concluded years of negotiations in June.

Before coming into force, both the Kenyan and European parliaments must ratify the deal.

The EU hails this agreement as “the most ambitious economic partnership” with a developing country, emphasizing sustainable development commitments in labor rights and environmental protection.

With the EU representing over 20 percent of Kenya’s exports, including agricultural staples like tea, coffee, vegetables, and fruits, the deal holds immense economic significance. Total two-way trade surged to 3.3 billion euros ($3.6 billion) in 2022, a notable 27 percent increase since 2018.

This move is seen as part of the EU’s broader strategy to counter China’s Belt and Road initiative, with the bloc committing to substantial investments in Kenya through its Global Gateway initiative earlier this year.

The agreement stems from a decade-long dialogue between the EU and the East African Community (EAC). While the EAC initially signed a trade agreement with the EU in 2016, it faced setbacks.

However, Ruto remains optimistic, stating, “This agreement leaves the door wide open for our EAC partners to join so that together as a region we can benefit.”