Kenya is on the verge of solidifying its trade impact with the United Arab Emirates (UAE) market, just days after a similar trade deal with the European Union (EU) came into force.
- During the first quarter of 2024, revenue from exports to Asia were valued at KSh 42.7 billion, representing an increase of 76.4 per cent from the first quarter of 2023.
- The improvement was primarily on account of increased exports to Saudi Arabia and United Arab Emirates, which more than tripled and doubled, respectively.
- The Cabinet has already considered and approved the UAE agreement which will give Kenyan products preferential market access to the
- There was increased domestic exports of tea to Saudi Arabia, goat meat to United Arab Emirates; and re-exports of kerosene type jet fuel to these two countries. On the contrary, exports to Iran declined by 45.5 per cent, resulting from decreased exports of tea to this destination.
In contrast, import expenditure to the Middle East, dropped by 13.9 per cent to KSh 126.1 billion in the first quarter of 2024 from a similar period in 2023. This was largely attributable to the decline in imports of chemical fertilizers from Saudi Arabia; and gas oil and motor spirit (gasoline) premium from the United Arab Emirates
“In keeping with our commitment to enhance access to foreign markets, we have considered and approved the Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement. Once the treaty is ratified by Parliament, Kenyan products including tea, meat, fruits, vegetables, and cut flowers will have preferential market access to the United Arab Emirates,” Cabinet said in a dispatch.
The announcement comes few days after the Economic Partnership Agreement allowing Kenyan exports to access 27-member European Union Market duty-free came into effect. The deal will also see Kenya open its market to European Union products gradually over a 25-year period.
The Agreement, which includes trade and climate change, was concluded in June 2023 and signed on 18 December 2023. It also aims at implementing the provisions of the EU-East African Community (EAC) EPA, and it remains open to other EAC countries.
The EU is one of Kenya’s topmost export destinations and second largest trading partner with the total trade between the EU and Kenya reaching over €35 billion in 2023, an increase of 16% compared to 2018.
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