On Tuesday, 8 December, Kenya, and the United Kingdom officially signed an Economic Partnership Agreement. Kenya’s Trade Cabinet Secretary, Betty Maina, and UK’s International Trade Minister, Ranil Jayawardena, signed the agreement.
Betty Maina says the agreement was driven by the need to secure duty-free and quota-free access to the UK market. She also added that with the Brexit transition period fast approaching, Kenya had to secure a deal.
The deal has been termed the Economic Partnership Agreement and will be effective from 1 January 2021.
Why is the deal important to Kenya?
UK buys about 30 percent of Kenyan exports to the European Union (EU) annually. Moreover, the UK sells to Kenya goods worth around KSh 35 billion every year.
Peak export goods that Kenya sold to the UK in the previous year include coffees, tea, and spices (£121 million); vegetables (£79 million); and flowers (£54 million).
The UK market also accounts for about 43 percent of Kenya’s vegetable export, and not less than 9 percent of cut flowers.
What does the deal spell out?
Ranil Jayawardena said that the deal gives businesses from the two countries the certainty that trading will be normal, resulting in sustained livelihoods and jobs.
Betty Miana said that the deal aims to expand Kenya’s supply capacity and increase its exports of goods and services to the international market. According to Ms. Maina, other benefits include an increase in investments, increased job opportunities, expansion in the range of export, and prosperity as per Vision 2030.
Kenyans in the export farming sector will continue having tariff-free access to the UK market.
For the UK, there will also be continued tariff-free access to the roughly 2,500 UK businesses exporting goods to Kenya annually. The UK supplies Kenya with mostly electronics, technical equipment, and machinery.
Are other EAC Countries shut out?
The deal, which involved all the East African Community (EAC) countries, has clauses to allow the other states to join in. For example, Uganda and Tanzania wanted to discuss the deal after their countries’ elections; they can still do so.
Jayawardena said that the agreement is the beginning of a regional agreement with EAC. He added that he anticipates working with the remaining member states to forge long-lasting trade ties.
Implementation
The deal will only be implemented after ratification by both countries’ national assemblies.
For regional integration purposes, Kenya’s National Assembly will deposit copies of the confirmation to the African Union and the EAC secretariat. Likewise, the UK government will also receive a copy from the East African country.
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