Kenyan traders are set to save Ksh1.5 billion annually following a new partnership agreement with the UK sealed on Tuesday, March 21.
Following the deal, all companies operating in Kenya, including British businesses, would continue to benefit from duty-free access to the UK market.
The duty-free market would help Kenyan exporters save Ksh1.5 billion in duties on products such as green beans and cut flowers.
"Kenya will also gradually reduce duties on UK products they have deemed non-sensitive, providing Kenyan businesses with cheaper inputs which can support agricultural development and manufacturing," UK's government statement read in part.
"It does this by gradually phasing out tariffs across the majority of UK exports, covering sectors including machinery and pharmaceuticals," it added.
The deal followed a meeting between Cabinet Secretary for Investments, Trade and Industry, Moses Kuria and UK Minister for International Trade Nigel Huddleston in London at the first-ever UK-Kenya Economic Partnership Council Meeting.
Explaining the significance of the deal, experts noted that it was critical in supporting Kenya to grow its economy sustainably, whilst providing UK businesses with increased trade opportunities.
According to experts, the deal is also expected to increase job opportunities offered by UK companies in the country from the current 250,000.
"The UK is the first country outside of Africa to enter into a trade agreement with Kenya, the East African Community’s largest economy," a statement from the UK government read in part.
"UK-Kenya bilateral trade is already worth Ksh167 billion per annum, with the capacity for significant growth," it added.
Besides extending the duty-free treaty for Kenyan traders, the two countries agreed to eliminate trade barriers.
Other East African countries are also set to benefit from the deal sealed by President William Ruto's administration.
