The European Commission has announced that the EU-Kenya Economic Partnership Agreement (EPA) has come into effect, marking a significant milestone in the bloc’s partnership with the East African country.
The deal, which was negotiated between the European Union (EU) and the Kenyan government, is expected to boost bilateral trade, increase investment flows, and create new economic opportunities.
The agreement, which took effect on July 1, 2024, is described as the most ambitious trade deal negotiated with an African country in terms of sustainability.
It includes binding provisions on labor issues, gender equality, environmental protection, and the fight against climate change.
Kenya, East Africa’s main economic hub, will benefit significantly from the deal, which will fully open the EU market to Kenyan products and incentivize EU investment in the country.
In 2023 alone, trade between the EU and Kenya reached an all-time high of Ksh416 billion (approximately $4.1 billion), and this figure is expected to rise further with the new agreement in place.
The deal is expected to create new job opportunities for Kenyan businesses and exporters, as well as stimulate economic growth in the country.
The European Commission has hailed the agreement as a key milestone in the EU-Kenya Strategic Partnership, highlighting its potential to serve as a template for other sustainable trade agreements with African countries.
Key Highlights of the EU-Kenya Economic Partnership Agreement:
- Boosts bilateral trade in goods and services
- Increases investment flows between the EU and Kenya
- Strengthens ties between reliable partners
- Facilitates mutually beneficial economic relations
- Creates new job opportunities for Kenyan businesses and exporters
- Stimulates economic growth in Kenya
- Includes binding provisions on labor issues, gender equality, environmental protection, and climate change
Why Kenya was chosen as the first African country for this deal:
- Kenya is East Africa’s main economic hub
- The EU is Kenya’s first export destination and second-largest trading partner
- The country’s growing economy presents significant opportunities for investment and trade
