The 1st of July 2024 marked the implementation of the EU-Kenya Economic Partnership Agreement (EPA), signifying a significant milestone in the strategic relationship between the European Union and Kenya.

This agreement is designed to enhance bilateral trade in goods, boost investment flows, and strengthen the bond between these reliable partners. It aims to promote mutually beneficial economic relations in a sustainable way, thereby encouraging job creation and economic growth.

The EU-Kenya EPA is notable for being the most ambitious sustainability-focused agreement the EU has negotiated with an African nation. It includes binding commitments on labor issues, gender equality, environmental protection, and the fight against climate change. This agreement is expected to serve as a model for future sustainable trade agreements.

Kenya, being the economic hub of East Africa, holds significant potential for growth in its trade relations with the EU. The agreement is anticipated to unlock new economic opportunities, as the EU is Kenya's primary export destination and its second-largest trading partner. In 2023, trade between the EU and Kenya totaled €3 billion, marking a 16% increase since 2018.

For Kenyan businesses and exporters, the EPA will open up the EU market entirely to Kenyan products, providing increased legal certainty and stability, which will also attract more EU investment into Kenya.

Background

The Economic Partnership Agreement between the EU and Kenya was finalized in June 2023 and officially signed on December 18, 2023. This agreement aims to implement the provisions of the EU-East African Community (EAC) EPA and is open to other EAC countries.

The ambitious commitments of the EPA align with the EU's 2021 Trade Policy Review and its broader trade policy with Africa. This helps the EU to deepen and expand its trade agreements with African nations, while also enhancing their sustainability objectives.