As U.S. tariffs under President Donald Trump’s administration continue to challenge African economies, Kenya is intensifying efforts to expand its export footprint in Europe under the recently ratified Economic Partnership Agreement (EPA) with the European Union.
Speaking at the second EU-Kenya Business Forum in Nairobi, Kenya’s Cabinet Secretary for Investment, Trade and Industry, Lee Kinyanjui, emphasized the country’s pivot toward the EU to offset the impact of the 10 percent U.S. tariff hike imposed in March. These tariffs have hit key Kenyan sectors, particularly horticulture and textiles.
“In times of turbulence such as now, it pays to have good, stable trading partners like the EU,” Kinyanjui said. “We want to diversify our export markets so we’re not over-reliant on one country. The goal is to spread our risks.”
Kenya ratified its bilateral EPA with the EU on April 24, 2024, with the agreement officially entering into force on July 1. The deal, signed on December 18, 2023, allows Kenya duty-free, quota-free access to the EU’s 27-member bloc, and is already yielding results.
According to Kinyanjui, Kenya’s exports under the EPA are showing positive growth.
Latest trade figures show EU-Kenya trade reached €3.4 billion ($3.8 billion) in 2023, a 13% year-on-year increase and a 53% rise over the past decade, although the trade balance remains in the EU’s favor. Kenya exported $1.07 billion worth of goods to the EU in 2023, while importing $1.6 billion.
Filippo Amato, Trade Counsellor at the EU Delegation to Kenya, acknowledged the growth: “The balance of trade is still in favour of the EU, but that gap is narrowing.”
However, the Kenya-EU EPA has not been without controversy. Some East African Community (EAC) members and regional think tanks like SEATINI have voiced concerns that the bilateral agreement could undermine regional integration and the goals of the African Continental Free Trade Area (AfCFTA).
Still, for Kenya, deepening ties with Europe represents a strategic path to resilience, especially as it navigates shifting global trade dynamics.
