von der Leyen – Ruto – Photo © European Union 2023
(NAIROBI) – The European Union and Kenya signed an Economic Partnership Agreement (EPA) Monday to boost bilateral trade in goods, increase investment flows, and contribute to sustainable economic growth.
The EU Commission hailed the EPA as 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 new Economic Partnership Agreement will boost bilateral trade even further, support investments and create good jobs in Kenya,” the Commission’s president Ursula von der Leyen told Kenya’s president William Ruto: “This agreement will also contribute to sustainable and fair economic growth, bringing new opportunities for companies, to the benefit of both our people.”
The EU is Kenya’s first export destination and second largest trading partner, amounting to a total of 3.3 billion in bilateral trade in 2022 – an increase of 27% compared to 2018.
On its entry into force, the EPA will fully open the EU market to Kenyan products, which will lead to more opportunities for Kenyan businesses and exporters.
On the other side, it will also incentivise EU investment in Kenya thanks to increased legal certainty and stability.
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.
Together with EU development assistance, the Commission says this will help build capacity, and assist Kenya in smooth implementation of the EPA, while supporting local farmers in meeting EU standards.
Factsheet Key benefits EU-Kenya EPA
Joint Statement European Union and Kenya
EU-Kenya trade agreement - guide
