How Kenya-EU economic partnership agreement set to benefit Kenyan farmers

The European Union and Kenya have today signed an Economic Partnership Agreement (EPA) to boost bilateral trade in goods, increase investment flows, and contribute to sustainable economic growth.

The balanced agreement, among other areas, includes a special safeguard for agriculture, food security and infant industry.

In this, it offers opportunities for farmers in EPA partner countries, as the EU is the biggest importer of agricultural products from African, Caribbean and Pacific (ACP) countries. As the overwhelming majority of exports to Kenya are horticultural products, this opportunity is particularly important.

President William Ruto said Kenya will now enjoy duty and quota-free access to the European market when the agreement is ratified by the European Parliament.

“The access to the 16 trillion euro market will stimulate the growth of manufacturing, value addition and entrepreneurship in the country.”

Kenya, as other ACP partner countries, can protect some sensitive agricultural products, either by excluding them from tariff cuts or by keeping the option of triggering safeguards in case of unforeseen, sharp and sudden increase of imports from the EU.

The country, as other ACP partner countries, can also take food-security measures where necessary. EU development assistance, through trade capacity-building measures, supports farming and rural employment, and farmers’ capacity to comply with sanitary and phytosanitary and other agricultural standards.

This alignment of standards makes it easier to comply with the requirements necessary to bring those products into the EU, further opening trading opportunities in the agricultural sector.

Ruto said the government is currently building 500 fresh produce markets and 47 county aggregation and industrial parks with cold rooms to preserve perishable agricultural products like vegetables and avocados and improve their quality so as to achieve the highest quality.

Kenyan economy competitiveness

The deal has dedicated chapter that has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy.

This together with EU development assistance, will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities the agreement provides.

“Europe will also provide the necessary agricultural machinery to boost Kenya’s production capacity,” Ursula von der Leyen, President of the European Commission.

The agreement corresponds to the Commission’s commitment to step up engagement with partners and regions in Africa. The aim is to enhance sustainable trade links between both continents and within Africa itself, thereby meeting key objectives for both the EU-Africa relationship and the green transition.

“Kenya is a key partner for the European Union in Africa. The new Economic Partnership Agreement will boost bilateral trade even further, support investments and create good jobs in Kenya. This agreement will also contribute to sustainable and fair economic growth, bringing new opportunities for companies, to the benefit of both our people. It includes the strongest social and climate commitments of any EU trade deal with an African country,” said Leyen.

“This is a historic agreement: Kenya is the economic hub of East Africa and a key ally in the fight against climate change. The agreement will unlock new areas of cooperation and mutual benefit for our workers, businesses and traders. And it puts in the spotlight our shared commitment to sustainable development, including labour rights, the environment and climate action. We now look forward to turning this deepened cooperation into meaningful action on the ground,” said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade.