- The Economic Partnership Agreement is set to boost trade ties and economic development between the country and EU.
- Dombrovskis recently said the deal was pursued because EU sees Kenya as a potential partner.
Image: COURTESY
Kenya and the European Union (EU) will today ink a trade deal to mark the conclusion of an eight-year negotiation process.
President William Ruto and EU Trade Commissioner Valdis Dombrovskis who is already in the country will preside over the ceremony.
The Economic Partnership Agreement is set to boost trade ties and economic development between the country and the EU.
It will see Kenya enjoy duty-free and quota-free access to the EU markets for all its exports including coffee, flowers and minerals.
In return, Kenya will gradually open its market to more imports from the EU.
"Flowers are Kenya's top export to the EU providing 2.5 million direct and indirect jobs. The EU through the GlobalGateway supports the shift from air to sea transport for a more sustainable supply chain," said Dombrovskis.
The accord which is set to be announced comes at a time when the EU is concerned about China's growing involvement in the continent.
Dombrovskis recently said the deal was pursued because the EU sees Kenya as a potential partner.
"Our trade deals are critical for the EU's economic security and competitiveness and also help us grow our exports and, therefore, support more European jobs," he stated.
The EU started talks with the five East African Community (EAC) countries- Rwanda, Burundi, Tanzania and Uganda- but only Kenya ratified the agreement.
This Accord which is set to be announced comes at a time when Brussels is concerned about China's growing involvement in the continent.
Through the Global Gateway aid initiative, the EU has pledged to spend a whopping €150 billion (Sh22.7 trillion) in Africa between 2021 and 2027.
Kenya is among the largest economy in Africa but has been faced with challenges which include rising fuel and food prices occasioned by the Russia-Ukraine war, currency depreciation, and increasing borrowing costs.
With the deal, it has an opportunity to enhance its export base and navigate these obstacles.
EU is Kenya's largest export market accounting for 20 per cent of the country's total exports.
Statistics show that more than 70 per cent of Kenya's flower production goes to the European bloc.
In 2022 alone, Kenya sold goods worth €1.3 billion (Sh197.5 billion) to the EU and imported products worth €2 billion (Sh303.9 billion) with trade between the two growing by about a quarter since 2019.
In response, the EU has launched its Global Gateway aid initiative pledging to spend a whopping 150 billion euros in Africa between 2021 and 2027.
President William Ruto has acknowledged the EU's importance as a trade and investment partner for Kenya and the rest of Africa.
“I thank the European Commission for its cooperation in trade and investment partnership,” he said in March.