Kenya - EU sign economic partnership Agreement

Nairobi, 

Monday, 18 December, 2023 

McCreadie Andias 

Kenya and the European union (EU) today signed an Economic Partnership Agreement (EPA) to boost bilateral trade in goods, increase investment flows, and contribute to sustainable economic growth. 

The signature took place during an official ceremony in Nairobi with European Commission President Ursula von der Leyen and President Dr. William Samoei Ruto.

The deal provides a platform to support job creation on both sides, along with targeted cooperation to enhance Kenya's economic development. 

EU calls the deal 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.

President William Ruto said that the deal puts Kenya at a global position in terms of production of quality products. 

"The landmark Kenya-European Union Economic Partnership Agreement signals to the globe that we are ready to manufacture and export high-value products to the world.

It opens the mega, lucrative and premium EU market for Kenyan products, creating and expanding opportunities for our businesses and exporters." President William Ruto said in a statement on X. 

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.

The EU has recognized Kenya as a leading national in driving sustainable efforts in the African continent including Kenya's campaign 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 balanced agreement takes into account Kenya's development needs by providing a longer period to gradually open its market. 

It also includes a special safeguard for agriculture, food security and infant industry. A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy. Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides.

After the signing of the agreement in Nairobi, the EPA will be transmitted to the European Parliament for consent which will afterwards see the agreement implemented after approval. 

EU President Ursula Von der Leyen acknowledged Kenya as an important economic patner for the European union in Africa. 

"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. 

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." Said Ursula von der Leyen. 

"This is a historic agreement: Kenya is the economic hub of East Africa and a key ally in the fight against climate change. The agreement will unlock new areas of cooperation and mutual benefit for our workers, businesses and traders. And it puts in the spotlight our shared commitment to sustainable development, including labour rights, the environment and climate action. We now look forward to turning this deepened cooperation into meaningful action on the ground." Said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade. 

The Economic Partnership Agreement between the EU and Kenya aims to implement the provisions contained in the EU-East African Community (EAC) EPA, and will be open for other EAC countries to join in the future.

Deputy President H.E. Rigathi Gachagua, EGH, Prime Cabinet Secretary Hon Musalia W Mudavadi, Spain Secretary of State for Trade Xiana Margarida Mendez Bertolo, EU Ambassador Henriette Geiger, Cabinet Secretaries, Governors, among others, were present.