Kenya and the European Union signed a new trade agreement at a ceremony in Nairobi on Monday, at a time when Brussels is seeking closer economic ties with Africa on the coattails of China's major investments on the continent.
Once it comes into force, the Economic Partnership Agreement (EPA) will allow Kenya duty-free access to the EU, its largest market, to which the African country sends around a fifth of its exports. These are mainly agricultural products such as tea and coffee, and 70% of its flowers.
Kenya, for its part, will gradually open up its market for European imports, with the exception of a series of so-called "sensitive products" which have the potential to become competitive in the future – which include, among others, food products and ammunition. These types of goods flooding into the local market could have a negative impact on poorer communities.
Nairobi streets. Credit: Pixabay
"Today is a very proud moment for Kenya, and I believe for the European Union", said Kenyan Trade Minister Moses Koria after signing the EPA with EU Trade Commissioner Valdis Dombrovskis.
"This is a great day for relations between the EU and Kenya," Dombrovskis said at the ceremony. Kenyan President William Ruto was also in attendance. The African country is widely regarded by the EU as a reliable and stable partner.
This is the first major trade agreement between the EU and an African country since 2016, and comes after China's investment spree on major infrastructure projects across the continent.
The EU is taking steps to counter China's so-called "New Silk Roads" programme, by announcing in February that it would increase investment in Kenya by hundreds of millions of dollars through its own "Global Gateway" strategy.
