Kenyan businesses will now have the privilege of duty and quota-free access to the European market, thanks to the Economic Partnership Agreement that was inked between the Government of Kenya and the European Union at State House, Nairobi on Monday, June 19.
EU lead negotiator Dora highlighted that market access is the most essential feature of any investment, and that is what Kenya has been granted. She declared that the arrangement would ensure that Kenya has access to the European market and will also draw in investors
“Kenyan exports will enjoy duty and port-free access to the European market from day one. Kenya, given its economic development status, will only have to open its own market for EU production later and very gradually. The EU is Kenya’s major export market. Reliability of the business environment and market access is the single most important factor for investment decisions,” EU lead negotiator Dora said.
Additionally, she commented that Kenya is an expanding middle-income country and in order to develop, it requires premium imported goods. Talks concerning the trade pact commenced in 2016, with the EU initiating conversations with the five East African Community countries – Rwanda, Burundi, Tanzania, and Uganda – however, only Kenya ratified the agreement. The EU is Kenya’s leading export market, accounting for 20% of the nation’s total exports.
The agreement comes at a time when the EU is apprehensive about China’s increasing presence in the region. EU Trade Commissioner Valdis Dombrovskis mentioned that the pact was pursued since the EU views Kenya as a potential ally. Through the Global Gateway support program, the EU has vowed to dedicate an immense €150 billion (Sh22.7 trillion) to Africa between 2021 and 2027. Kenya is one of the major economies in Africa but has since been confronted with challenges which include escalating fuel and food prices occasioned by the Russia-Ukraine conflict, currency depreciation, and increasing interest charges.
