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Tag: Kenya-EU Economic Partnership Agreement (EPA)

  • Kenya Secures Markets Representing 46 percent of the Global GDP

    Kenya Secures Markets Representing 46 percent of the Global GDP

    Kenya has secured market access representing 46 percent of the global Gross Domestic Product (GDP) through various trade agreements, Acting Director of External Trade Joseah Rotich has said.

    Rotich said the Kenya–EU Economic Partnership Agreement (EPA), the Kenya–UK EPA, the Kenya–UAE Comprehensive Economic Partnership Agreement (CEPA), the African Growth and Opportunity Act (AGOA), the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) have opened up vast markets across several regions globally and emphasized the need for Kenyan producers and manufacturers to leverage on these trade pacts to boost exports and drive economic growth.

    “Now that we have secured these markets we need to put in place strategies to access them by increasing our production capacity and diversifying our products to enhance competitiveness,” he said.

    The acting director was speaking in Nairobi when he officiated a two -day sensitization workshop for Kenya’s National Implementation Committee (NIC) on the AfCFTA implementation strategy.

    Rotich termed the AfCFTA as a landmark agreement with the potential to industrialize Africa and noted that a strong NIC was essential for effective implementation of the continental agreement.

    “The AfCFTA implementation strategy is the first strategy tied to a particular agreement and it will provide a road map on how Kenya can access the African market. For the strategy to succeed the NIC must be equipped with the necessary tools for implementation,” he added.

    The acting director stated that AfCFTA seeks to only increase intra-Africa trade but also enhance regional integration and underscored the need for Kenya to capitalize on the agreement by trading with the other 54 member states.

    For Kenya to fully optimize on the agreement Rotich highlighted agriculture, livestock and fisheries, manufacturing, mining, handicrafts, oil and gas as some of the priority export sectors for products particularly targeting markets in Central and West Africa.
    He also highlighted business, tourism, education, cultural and sports services, ICT, transport and logistics as key service sectors with potential under the trade pact.

    Speaking at the same workshop Kenya Association of Manufacturer’s (KAM) Head of Policy and Regulatory Advocacy Miriam Bomett said sensitization of the NIC is key to comprehensively equip members with the necessary skills and knowledge to effectively implement the AfCFTA.

    “A fully informed NIC with all members understanding the implementation strategy is crucial for Kenya to utilize the continental market,” said Bomett.

    She hailed the government’s efforts on opening up markets through the several trade agreements and noted that the AfCFTA, if implemented well, has potential to increase the country’s manufacturing capacity to 100 percent.

    “The current manufacturing capacity lies between 40 -50 percent, the agreement however can revive the sector. To achieve this collaborative efforts are required to ensure manufacturers benefit from the AfCFTA,”noted the Head of Policy and Regulatory Advocacy.

    Bomett stressed the need to put in place intervention measures for successful implementation of the AfCFTA including policy coherence, eliminating of Non-Tariff Barriers, prioritization and diversification of markets especially in countries that Kenya lacks competitive advantage.

    She disclosed that the private sector was closely collaborating with the government to ensure that Kenyan businesses take advantage of the trade agreement.

  • EU envoy urges Kenya to diversify exports under new trade agreement

    EU envoy urges Kenya to diversify exports under new trade agreement

    The European Union (EU) Ambassador to Kenya, Henriette Geiger, has urged Kenyan entrepreneurs to expand their range of export products to the EU under the Kenya-EU Economic Partnership Agreement (EPA) to boost profits.

    While noting that Kenya primarily exports horticultural products such as flowers and vegetables, Geiger emphasized the potential for increased earnings if exporters pivot toward manufactured and high-value goods.

    Speaking at a Kenya-EU EPA sensitization forum in Athi River, Machakos County, Geiger highlighted that the EPA presents Kenya with a valuable opportunity to build industrial capacity and advance toward its goal of becoming an upper-middle-income country.

    “Kenya aims to achieve upper-middle-income status, and this can be realized through establishing manufacturing and processing companies,” she stated.

    Machakos County has been proactive in seizing this opportunity by setting up Special Economic Zones (SEZs), which Geiger praised, calling on other counties to follow suit.

    “These SEZs offer unique opportunities that can significantly drive manufacturing growth,” she added.

    The ambassador assured Kenya of the EU’s commitment to supporting EPA implementation and mentioned that similar forums will be conducted in Europe to attract investment into Kenya, thereby strengthening bilateral trade.

    “I encourage the Kenyan government to partner with the private sector to foster a conducive environment for business. Kenya boasts one of the strongest private sectors in Africa, which is why many companies are choosing to establish operations here,” she said.

    Joseph Rotich, Director of External Trade at the State Department for Trade, highlighted that the EPA provides Kenyan exporters with unrestricted access to the EU market.

    “The agreement guarantees quota-free and duty-free access to all 27 EU countries,” Rotich noted, adding that this will help expand Kenya’s industrial base and open new markets, including the United States.

    Rotich affirmed the State Department’s commitment to fully implementing the agreement, with an EPA implementation strategy in the advanced stages.

    He pointed out that the EPA also aligns with the African Continental Free Trade Area (AfCFTA) and the Tripartite Free Trade Area (TFTA), offering EU investors in Kenya access to wider African markets.

    Kenya Association of Manufacturers (KAM) Acting CEO Tobias Alando welcomed the EPA as a promising opportunity for Kenyan manufacturers to both export to the EU and establish joint ventures with EU companies to set up operations in Kenya.

    “We call upon counties to adopt policies that create an enabling environment for the manufacturing sector,” Alando said.

    Chief Executive Officer of the Fresh Produce Exporters Consortium of Kenya, Okisegere Ojepat, urged Kenyan producers to seize the EPA opportunity and scale up production to meet EU demand.

    Ojepat observed that Kenyan exports to the EU had declined recently, primarily due to evolving regulatory requirements, but expressed optimism that the EPA would address these challenges.

    “We must ensure a steady supply to the 27-country economic bloc and encourage farmers and exporters to adhere to standards to access these markets,” he added.

    Ojepat also called on national and county governments to establish regulatory frameworks that enable farmers and exporters to access the EU market more efficiently.

    Other key figures attending the forum included Machakos County Secretary Dr. Muya Ndambuki, as well as public and private sector stakeholders.

    The forum in Machakos is part of a national series aimed at raising awareness of the opportunities provided by the Kenya-EU EPA.