The EU-Kenya Economic Partnership Agreement (EPA) has come into effect today, marking a significant milestone in the EU-Kenya Strategic Partnership. This agreement aims to enhance bilateral trade in goods, promote increased investment flows, strengthen ties between reliable partners, and sustainably facilitate mutually beneficial economic relations.
These efforts are expected to stimulate job creation and economic growth. As East Africa’s leading financial hub, Kenya is pivotal in the EU-Kenya Economic Partnership Agreement (EPA).
The agreement, concluded in June 2023 and officially signed on December 18, 2023, aims to implement the provisions of the EU-East African Community (EAC) EPA and is open to other EAC countries. The EPA and its ambitious commitments are a key aspect of the EU’s 2021 Trade Policy Review and its trade policy with Africa, aiming to deepen and expand trade agreements with African countries while enhancing sustainability objectives.
Notably, the EU-Kenya EPA is the most far-reaching deal negotiated with an African country in terms of sustainability and can serve as a model for other sustainable trade agreements. The commitments within the EPA include binding provisions on labour issues, gender equality, environment, and the fight against climate change. Kenya’s significant growth potential in trade relations with the EU is a source of pride and confidence, and the agreement is expected to unlock new economic opportunities.
The EU is Kenya’s primary export destination and second-largest trading partner, and total trade between the EU and Kenya reached €3 billion in 2023, marking a 16% increase compared to 2018.
The EPA will also create more opportunities for Kenyan businesses and exporters by fully opening the EU market for Kenyan products and incentivising EU investment in Kenya through increased legal certainty and stability.
