Economy

Agreement between EU and Kenya: major turning point for African trade

On December 18, the European Union and Kenya reached a noteworthy milestone by signing an economic partnership agreement, marking a new era for trade between the two. The agreement, which has been under talk for several years, grants privileged access to the European market for Kenyan products.

Under this treaty, Kenyan goods now enjoy duty-free and quota-free access to the European market. In return, European countries can profit from tariff reductions when exporting their products to Kenya. This mutually beneficial relationship is anticipated to boost trade between the two parties.

The European market currently constitutes 20% of Kenyan exports, especially in the agricultural sector. With total trade valued at €3.3 billion, these figures have experienced a remarkable 27% growth in just five years.

One of the strategic purposes of this agreement is to counter the increasing influence of China in Kenya. China has made notable investments in the country, notably in the financing and construction of the $5 billion railway line connecting Nairobi to Mombasa.

While the treaty still requires ratification by the Kenyan and European parliaments, it indicates the European Union’s commitment to strengthening its trade ties with African nations. The EU hopes that this breakthrough will inspire other African countries to pursue similar agreements. In 2014, the East African Community (EAC) initiated similar discussions with the EU, with Rwanda, Uganda, Burundi, and Tanzania expressing interest in comparable trade deals. Nevertheless, as of now, only Kenya has taken the step of ratification.