Kenya and the European Union (EU) recently signed a significant Economic Partnership Agreement (EPA). This agreement is a big deal because it allows Kenya to export goods to the EU without paying duties and gives them easy access to the European market.

The official signing ceremony happened at State House in Nairobi, with President William Ruto and European Commission President Ursula von der Leyen overseeing the process. The EU considers this EPA as its most ambitious trade agreement with a developing country, setting new standards for sustainability.

The EPA covers various aspects such as climate and environmental protection, labor rights, and gender equality. The goal is to create a fair and environmentally responsible trading relationship. The EU is a crucial market for Kenya, being its primary export destination and second-largest trading partner.

The total trade between the EU and Kenya increased significantly in recent years, reaching €3.3 billion (Sh555.5 billion) in 2022. Once the EPA takes effect, it will allow Kenyan businesses to freely access the EU market, boosting economic activity. Additionally, the agreement is expected to attract EU investments in Kenya, providing a stable legal foundation.

Recognizing Kenya’s commitment to sustainability, the EPA aligns with the nation’s efforts in climate change initiatives. Kenya and the EU jointly lead the Coalition of Trade Ministers on Climate, highlighting their shared dedication to environmental responsibility.

This trade agreement represents a shift in the EU’s approach to trade and sustainable development, emphasizing its commitment to developing nations. The EPA acknowledges Kenya’s development needs by gradually opening its market over time. Special provisions safeguard agriculture, food security, and infant industries, supporting balanced economic growth.

Ursula von der Leyen, the President of the European Commission, emphasized the importance of the agreement, stating that Kenya is a key partner for the EU in Africa. The EPA is set to be scrutinized by the Kenyan parliament and the European Union Parliament before it comes into force.

President William Ruto highlighted that the agreement leaves the door open for other East African Community (EAC) nations to join in the future. The EU, consisting of 27 countries, operates a single market allowing the free movement of goods, capital, services, and people between member states.

Rebecca Miano, the Cabinet Secretary for Investments, Trade, and Industry, expressed that the agreement marks a new era where Kenyan goods gain immediate duty-and quota-free access to the European market, and over time, European goods will also have preferential access to the Kenyan market. Kenya primarily exports tea, coffee, flowers, fruits, and vegetables to the EU, while importing machinery, pharmaceuticals, and chemicals from the EU.