Kenya–US trade talks slacken as focus shifts to elections

The focus and attention in Kenya has now shifted to  campaigns after the Independent Electoral and Boundaries Commission cleared  aspirants for the presidential, governorship and other elective posts.

“There is nothing much going on right now, seems a lot of focus has shifted to the campaigns and formation of the next government,” a private sector official engaged in the talks told the Star yesterday.

However, Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina who is driving the talks said Kenya remains committed to the signing of the Free Trade Area (FTA) agreement. 

This is the second time the negotiations which started during former US President Donald Trump and Uhuru’s regime, on July 8, 2020, is being slowed down by an election.

When President Joe Biden took office in January last year, his administration sought more time to scrutinise the pact which has already seen two rounds of talks by experts and government officials take place.

The talks were also disrupted by the Covid-19 pandemic before the US elections.

The US has been  pushing for favourable terms among them a duty free market access for its goods, including agricultural and industrial, in a move aimed at taming the growing dominance of China’s trade with Kenya.

Last year, China remained the single leading source of Kenya’s imports, accounting for 20.5 per cent of the total imports valued at Sh441.4 billion, the Economic Survey 2022 shows.

Imports from the US were valued at Sh84.2 billion in the year, which was an increase from Sh56.3 billion.

“This was largely attributable to expenditure on imported liquefied butanes, aircraft equipment and parts, and medical and pharmaceutical products,” the survey by the Kenya National Bureau of Statistics notes.

Objectives captured in a document by the US Trade Representative’s office indicates the country is keen to secure comprehensive market access for US agricultural goods in Kenya by reducing or eliminating tariffs.

“…Eliminate practices that unfairly decrease US market access opportunities or distort agricultural markets to the detriment of the United States, including non-tariff barriers that discriminate against US agricultural goods, and restrictive rules in the administration of tariff rate quotas,” the document reads in part.

The US is also pushing for a competitive procurement space in government, eradication of corruption, adequate and effective protection of intellectual property rights, removal of non-tarrif barriers, favourable sanitary and phytosanitary measure among other interests.

Kenya on the other hand seeks to protect its local industries and sectors even as it pushes for favourable terms to grow its exports.

Last year, the value of exports was Sh59.5 billion, up from Sh49.3 billion previous year, with increases in the exports of macadamia nuts and articles of apparel and clothing accessories.

While it takes at least two years to conclude a Free Trade Agreement, according to experts, the timelines for the Kenya-US deal still remain open Maina said.

“I am not able to tell you that (the timelines) but negotiations are underway,” she told the Star on the telephone, noting such negotiations take time.

An example, according to Maina, is the East African Community Common External Tariff (CET), which has taken up to five years to conclude and adopt.

“Once you are in a partnership, you agree to talk until you decide you cant agree or you agree,” the CS said, “We are maintaining fidelity to our objectives.”

The US is the largest export destination of Kenya’s apparel, accounting for over 90 percent of garment exports every year, a sector that stands out as the biggest beneficiary in an improved trade environment under the FTA.

The current developments mean the deal will hopefully be concluded by the next regime of government that will take over from President Uhuru.

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