NAIROBI – Kenya has welcomed the approval of the Economic Partnership Agreement with the EU, restating the deal will promote Kenya’s global trade and economic growth, and a “resounding vote of confidence” to the country.
Members of European Parliament on Thursday voted to approve the EU’s Economic Partnership Agreement with Kenya by 366 in favour, 86 against and 56 abstentions.
With the vote, the European Parliament has given its consent to the EU-Kenya Economic Partnership Agreement (EPA), which aims to strengthen trade and economic ties with Kenya.
Reacting to the vote, Trade Cabinet Secretary Rebecca Miano said the EPA is a groundbreaking step that sets the stage for Kenya’s continued economic growth, offering a unique opportunity for Kenyan products to access EU markets and reinforcing Kenya’s pivotal role in the global trade landscape.
President William Ruto’s Spokesman Hussein Mohamed said the EPA will ensure farmers, processors and traders enjoy permanent duty-free and quota-free access for Kenyan exports – flowers, tea, coffee, fish, veggies, fruits, nuts, and more.
“It also opens significant opportunities for the EU in trade and investment in Kenya, spurring job creation in manufacturing – chemicals, steel, pharmaceuticals, machinery, and related sectors, ultimately positioning Kenya as a hub for European investors eyeing EAC, COMESA, and the AfCFTA,” Hussein said.
The EU said this is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected.
“The agreement includes binding and enforceable provisions on international standards and agreements on labour, gender equality, climate and the environment, and prevents both parties from lowering labour and environmental standards. The trade and sustainable development clauses, which are new compared to the EU-East African Community EPA, will be binding: possible issues will be addressed through a dedicated dispute resolution mechanism,” EU said in a statement on Thursday.
The EU is Kenya’s second largest trading partner, and its most important export market, it added, noting that total trade between the EU and Kenya reached €3.3 billion in 2022, according to Commission data.
“The EU’s imports from Kenya amount to €1.2 billion and are mainly vegetables, fruits, and flowers. EU’s exports amount to €2.02 billion and are mainly in mineral and chemical products and in machinery,” it said.
“This agreement it’s a catalyst for economic growth, job creation and sustainable development. It will provide duty-free, quota-free EU market access to all exports from Kenya as soon as it enters into force, as well as partial and gradual opening of the Kenyan market to imports from the EU,” Alessandra Mussolini of Italy said.
Mussolini added that Kenya is the by far most important trading partner of the EU among the EAC partner countries, representing nearly half of EU imports from the EAC and more than half of its exports to the EAC.
“By promoting trade and investment, the EPA contributes to economic growth and development in Kenya. Increased exports and investments can lead to job creation, income generation, and overall improvement in living standards,” she said.
Moving ahead, the European Council will give the trade deal its final formal approval for the ratification process to complete on the EU side.
Kenya National Assembly will also ratify the agreement.
The EU-Kenya EPA aims to implement the provisions the EU-East EAC Economic Partnership Agreement that was concluded in 2014.
The implementation of the EAC EPA has not been possible because not all EAC partner countries ratified it. Instead, the EAC Summit in 2021 agreed to allow individual states to proceed with bilateral implementation.
Except for Kenya, all EAC partner states are least developed countries, and still enjoy duty-free and quota-free access to the EU market. Kenya, a lower-middle income country, moved forward with ratification in order not to lose free access to the EU market.
Subsequently, EU-Kenya negotiations on bilateral implementation were concluded in 2023. Other EAC countries can decide to join the agreement.
