EU, Kenya reach trade deal in boost to Brussels’ Africa ties

The European Union and Kenya announced a major trade deal Monday in a coup for Brussels as it seeks deeper economic ties with Africa in the face of competition from China.

Kenyan President William Ruto presided over a ceremony in Nairobi to mark the formal conclusion of negotiations to the EU-Kenya Economic Partnership Agreement.

Once ratified and entered into force, Kenya will receive duty-free and quota-free access to the EU, its biggest market, where it sends roughly one-fifth of all its exports.

Ruto described the agreement as a “very important milestone” and voiced hope it would be implemented next year.

The Kenya deal is the culmination of trade talks between the EU and the East African Community (EAC) that started roughly a decade ago.

Imports from the EU to Kenya, such as chemicals and machinery, will receive progressive tariff reductions over 25 years, but some sensitive products will be excluded.

“Today is a very proud moment for Kenya, and I believe a very proud moment for the European Union,” Kenyan Trade Minister Moses Kuria said after signing the agreement with EU Trade Commissioner Valdis Dombrovskis.

Two-way trade totalled 3.3 billion euros ($3.6 billion) in 2022, up 27 per cent since 2018, according to EU figures.

Kenya’s main exports to the 27-nation bloc are agricultural products, including vegetables, fruits and the country’s famous tea and coffee.

Over 70 per cent of Kenya’s cut flowers are destined for Europe.

Ruto said Kenya’s farmers could be “assured of a predictable market” and the agreement provides new opportunities to boost this trade.

“It ensures a stable market for industrialists, for our farmers, and also industrialists in the European Union,” he said.

Priority region

“The EU-Kenya partnership agreement will boost trade and open new opportunities for workers, businesses and citizens,” European Commission head Ursula von der Leyen said on Twitter.

“A huge milestone with an important African partner and a key ally against climate change.”

Dombrovskis said EU companies had invested one billion euros ($1.1 billion) in Kenya in the past decade but that there was “a strong appetite” to do more business.

“With this deal in place, we have the right platform to do so,” he said.

It is the first broad trade deal between the EU and an African nation since 2016 and follows a spending spree by China on lavish infrastructure projects across the continent.

The EU has taken steps to counter China’s Belt and Road programme, announcing in February it would increase investments in Kenya by hundreds of millions of dollars through its own Global Gateway initiative.

Kenya is seen by the international community as a reliable and stable democracy in a turbulent region and Dombrovskis said the East African powerhouse was “a beacon of dynamism and opportunity”.

In a briefing with reporters ahead of Monday’s ceremony, Dombrovskis said Africa was a “priority region” for the EU and he hoped the Kenya deal would resonate elsewhere on the continent.

“Certainly, we think it’s going to be a boost,” he said of its impact on future trade links with Africa.

In 2014, the EU and the EAC -- then Kenya, Rwanda, Uganda, Burundi and Tanzania -- finalised negotiations for an economic partnership agreement but only Nairobi ended up ratifying it.