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Kenya, EU Launch Strategy to Double Trade and Investment in Five Years

Kenya and the European Union have launched an exciting initiative aimed at doubling trade and investment values between them over the next five years. This ambitious goal builds on the positive momentum created by the Kenya-European Union Economic Partnership Agreement (EPA), which went into effect in July 2024 and has already resulted in a remarkable 20% growth.

To support this target, they introduced the Kenya–EU Economic Partnership Agreement (EPA) Implementation Strategy, a comprehensive 10-year roadmap unveiled in Nairobi. This strategy empowers Kenyan businesses to maximize their duty-free and quota-free access to the expansive 27-member European Union market.

The framework is designed to assist exporters, manufacturers, farmers, and investors in overcoming market access challenges, while also enhancing Kenya’s competitiveness in one of the world’s largest consumer markets. Trade Principal Secretary Regina Ombam emphasized that this roadmap represents a significant leap toward turning the EPA into real economic benefits.

Ombam highlighted that since the EPA’s implementation on July 1, 2024, trade between Kenya and the EU has already surged by approximately 20%, showcasing the agreement’s potential to unlock new export opportunities. She reinforced that the strategy reflects Kenya’s dedication to fostering a resilient, competitive, and sustainable trading environment, enabling businesses of all sizes to thrive in the EU market.

European Union Ambassador to Kenya, Henriette Geiger, praised the strategy as a pivotal moment for strengthening economic ties between the two partners. She noted that the launch of this implementation strategy marks an essential step toward translating the agreement into concrete opportunities for Kenyan businesses and exporters. The EU remains committed to collaborating with the Kenyan government and the private sector to ensure the EPA delivers inclusive growth and long-term advantages for both parties.

The EPA guarantees permanent duty-free and quota-free access for Kenyan goods entering the EU, which stands as Kenya’s largest export destination outside the East African Community and its second-largest trading partner overall. According to data from the International Trade Centre, Kenya exported approximately $1.85 billion (Sh240 billion) worth of goods to the EU in 2025, while imports from Europe reached about $1.74 billion (Sh226 billion), highlighting a balanced trading relationship.

Kenya’s primary exports include cut flowers, tea, coffee, fresh fruits and vegetables, spices, nuts, edible oils, and live plants, while imports consist of machinery, pharmaceuticals, electrical equipment, motor vehicles, paper products, and industrial technology.

The implementation strategy emphasizes six key areas, including sanitary and phytosanitary standards, technical regulations, customs and trade facilitation, information and communication technology, structured commodity trade, and trade and sustainable development.

Tobias Alando, CEO of the Kenya Association of Manufacturers, noted that the EPA offers manufacturers significant opportunities to diversify exports and transition into higher-value industries. He pointed out that in addition to traditional agricultural exports, sectors like textiles, leather, automotive components, chemicals, and greenhouse construction materials can greatly benefit from easier access to European markets.

Alando remarked that the EPA opens doors to a vast consumer market across Europe while attracting investment, technology transfer, and strategic partnerships. He stressed that increased exposure to European standards and technologies would enhance the quality, efficiency, and competitiveness of Kenyan products.

However, Lillian Ndegwa, country director at TradeMark Africa, cautioned that market access alone would not suffice unless Kenya bolstered its logistics, standards compliance, institutions, and trade facilitation. She shared that the organization is implementing a €25 million (approximately Sh3.8 billion) European Union-funded Business Environment and Export Enhancement Programme, aimed at boosting export competitiveness, logistics, trade finance, and value addition.

“The programme, which runs from 2023 to 2027, already supports many priorities outlined in the EPA implementation strategy,” Ndegwa stated.

Private sector stakeholders believe this roadmap now offers the clarity needed for investors while providing Kenyan exporters with a clear path to expand into one of the world’s wealthiest markets, valued at around $21.2 trillion. The EU accounts for about 21% of Kenya’s annual exports, underscoring the importance of this partnership.

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