EU-Kenya Economic Partnership Agreement to boost bilateral trade

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

The EPA provides a platform to support job creation on both sides, along with targeted cooperation to enhance Kenya's economic development. It is 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, the EU said in a media release.

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

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 per cent 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.

The 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, the release added.

President Ursula von der Leyen said: “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.”

The EPA will be transmitted to the European Parliament for consent and will subsequently enter into force.