The European Union and Kenya signed a key trade deal on Monday as EU officials seek deeper economic ties with Africa.
Negotiations for the agreement formally concluded at a ceremony in Nairobi attended by Kenya's president, William Ruto, the Deputy President, Rigathi Gachagua, the Trade Minister, Moses Kuria, and the EU Trade Commissioner Valdis Dombrovskis.
The Economic Partnership Agreement (EPA) will give Kenya tariff-free access to the EU, its biggest market where it sends roughly one-fifth of all its exports.
These are mainly agricultural products such as tea and coffee, and 70 percent of its flowers.
Kenya, seen by the international community as a reliable and stable democracy in a turbulent region will gradually open its markets but exclude a range of sensitive products.
🇰🇪 From farm to fork: great to visit VegPro, a leading Kenyan exporter of fresh fruit, veg & flowers. It’s promoting female participation & good conditions for smallholders.
— Valdis Dombrovskis (@VDombrovskis) June 18, 2023
Our #EconomicPartnershipAgreement will lead to a more predictable investment climate in Kenya. pic.twitter.com/7BVsGtU6nA
"This puts us firmly on a path towards a privileged relationship, based on trust, rules and mutual opportunity," Dombrovskis said.
EU companies have invested 1 billion euros in Kenya over the past decade, but, according to Dombrovskis, there is considerable appetite in doing more business.
"With this Economic Partnership Agreement in place, we have also the right platform to do so," he added.
EU-Kenya Economic Partnership Agreement briefing, State House, Nairobi. https://t.co/xuieSxQrTl
— William Samoei Ruto, PhD (@WilliamsRuto) June 19, 2023
After signing the accord with Dombrovskis, Kuria declared: "Today is a very proud moment for Kenya and I believe a very proud moment for the European Union."
Dombrovskis added: "What a momentous day this is for EU-Kenya relations."
First European-African trade deal since 2016
This agreement is the first broad trade deal between the EU and an African nation since 2016.
In June 2016, the EU signed the Southern African Economic Partnership Agreement (SADC EPA) with South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland, which regulates trade in goods between the two regions.
The EU announced in February that it would increase investments in Kenya by hundreds of millions of euros through its Global Gateway initiative.
The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 - an increase of 27% compared to 2018.
— EU Trade 🇪🇺 (@Trade_EU) June 19, 2023
The EU-Kenya agreement will create more opportunities for both EU and Kenyan businesses, exporters and investors. pic.twitter.com/jLtLMGEQx7
Urging other members of the East African Community (EAC) to join the agreement, Dombrovskis said that Africa was a priority region for the EU and that he hoped the Kenya deal would resonate elsewhere on the continent..
In 2014 the EU and the EAC (then comprising Kenya, Rwanda, Uganda, Burundi and Tanzania) reached a trade deal but only Nairobi ended up ratifying it.
