President William Ruto is set to officiate a ceremony to announce the finalising of an Economic Partnership Agreement between Kenya and the European Union (EU) on Monday, June 19.
In a statement on June 17, Trade Cabinet Secretary Moses Kuria revealed that the ceremony will take place at State House in Nairobi.
Negotiations for the deal began in 2014 under a partnership agreement with the East African Community including Rwanda, Burundi, Tanzania and Uganda. However, only Kenya approved it.
“Kenya and the EU have finalised an Economic Partnership Agreement to be unveiled in a ceremony at State House in Nairobi on Monday, June 19, 2023,” Kuria stated.
The deal is meant to boost trade ties and economic development between Kenya and the European Union by granting Kenya duty-free and quarter-free access (DFQF) to the EU market for all its exports.
In return, Kenya agreed to act as the gateway for the EU to reach other African countries by gradually opening its market to more imports from European countries.
Kenyan manufacturers will also be able to import raw materials at lower prices, lowering the cost of production.
Other demands that Kenya agreed to include allowing investors to set up their shops in the country and climate action.
On May 26, European Trade Commissioner Valdis Dombrovskis stated that the deal was pursued because the EU viewed Kenya as critical to its economic prosperity and security, signalling the bloc’s trust in the Ruto administration.
"Our trade deals are critical for the EU's economic security and competitiveness and also help us grow our exports and, therefore, support more European jobs.
"We have invested significant energy and resources into progressing several important deals. We want to conclude negotiations with Australia and Kenya by the summer,” Valdis stated.
The EU is one of Kenya's largest export markets, accounting for 21.1 per cent of total exports.
According to the EU, more than 70% of Kenya's total flower production is exported to the bloc, supporting 500,000 direct and indirect Kenyan jobs.
