European Commission Unveils Landmark Trade Deal With Kenya

The European Commission announced that a groundbreaking trade agreement with Kenya, the first of its kind in Africa, came into effect on July 1, 2024.

The EU-Kenya Economic Partnership Agreement was negotiated between the European Union (EU) and President William Ruto’s administration.

In a statement from EU headquarters in Brussels, Belgium, the economic bloc hailed the agreement as a key milestone in the EU-Kenya Strategic Partnership.

“The agreement will boost bilateral trade in goods, increase investment flows, strengthen the ties between reliable partners, and facilitate mutually advantageous economic relations in a sustainable manner, stimulating job creation and economic growth,” a statement from the European Commission read in part.

“The EU-Kenya EPA is the most ambitious deal negotiated with an African country in terms of sustainability and can serve as a template for other sustainable trade agreements.”

The Commission highlighted that the historic deal includes binding provisions on labor issues, gender equality, the environment, and the fight against climate change.

Explaining why Kenya was chosen as the first country for such a deal, the EU described the nation as East Africa’s main economic hub.

“The agreement will unlock new economic opportunities, as the EU is Kenya's first export destination and second-largest trading partner,” the statement elaborated.

In 2023 alone, trade between the European Union and Kenya reached an all-time high of Ksh416 billion.

With the new deal taking effect, the amount is expected to rise further, creating more opportunities for Kenyan businesses and exporters. This is made possible by the agreement, which now fully opens the EU market to Kenyan products and incentivizes EU investment in Kenya.