Kenya and the UK are now closer to the Free Trade Agreement (FTA) after the two parties finalized negotiations on the deal on Tuesday. The trade deal, which will be signed soon after formal checks, will open tariff-free access to both markets.
Kenya’s current trade agreement with the UK which guarantees duty-free and quota-free access lapses on December 31, when the UK leaves the EU.
Kenya’s current trade agreement with the UK which guarantees duty-free and quota-free access lapses on December 31, when the UK leaves the EU.
Kenya and the UK already have a strong trade relationship valued at approximately Ksh 200 billion annually. The FTA, UK’s Sixth trade deal in Africa will open doors for other agreements between the UK and the East African Community.
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The UK, Kenya’s fifth-largest export destination, accounted for 43% of Kenya’s vegetable exports, and 9% of its flowers exports in 2019. The FTA will support these sectors as well as other exports like Coffee, tea, spices and live trees.
On the other hand, data from the Office of National Statistics (UK) shows that the UK’s export to Kenya for 2019 amounted to Ksh 115 billion (£815m) which included Vehicles, pharmaceuticals, and paper.
Speaking on the FTA, UK’s International Trade Minister Ranil Jayawardena said, “I’m delighted we’ve reached a trade agreement with Kenya. This deal gives businesses the certainty that they’ll be able to continue trading as they do now, supporting jobs and livelihoods in both our countries.”
Kenya’s High Commissioner to the UK Manoah Esipisu said, “the agreement will deliver significant benefits to Kenya and its partners in the EAC region when fully implemented. UK is one of Kenya’s key export markets, and one in which Kenya has a trade surplus. To secure continued market access is great news. It also delivers certainty.”
