Kenya had a booming economy until Covid-19 happened. Since then, there have been a series of efforts to upscale the economy through trades. This article discusses some important trade agreements Kenya signs with other countries, both bilateral and multilateral
U.S – Kenya Free Trade Agreement
The US and Kenya began FTA negotiations in July 2020, to reach a high-standard agreement that will complement regional integration initiatives within the EAC and AfCFTA. Negotiations were stopped at the end of 2020, pending the incoming USTR leadership’s examination of the status of the talks. In addition to the start of trade talks, the US and Kenya agreed on a Strategic Cooperation Framework to provide technical assistance and trade capacity building to Kenya to maximize Kenya’s use of AGOA trade benefits in the remaining years of the preference program, which is set to expire in 2025. The Framework will also assist Kenya’s core agricultural value chains in developing and becoming more competitive.
Kenya-Nigeria
Kenya and Nigeria have inked seven agreements that would strengthen their bilateral and trade ties. The agreements addressed tourism, trade, and investment; oil and gas; visa exemption for holders of diplomatic passports; double taxation treaties; agriculture, livestock, and fisheries; and city twinning.
Other agreements include collaboration between Kenya’s Foreign Service Institute and Nigeria’s Foreign Service Academy.
MoUs were also inked on police collaboration, five-year multiple visas for renowned businesspeople, and cooperation in the control of narcotics drug and psychotropic substance trafficking.
WTO and Kenya
The World Trade Agency (WTO) is the main international organization in charge of international trade rules. Kenya has been a member of the World Trade Organization (WTO) since January 1995. The 10th Ministerial Conference of the World Trade Organization was held in Nairobi, Kenya in December 2015. The “Nairobi Package,” a set of six ministerial resolutions on agriculture, cotton, and concerns affecting least-developed countries, was adopted at the end of the Conference (LDCs). The WTO’s most recent EAC Trade Policy Review is set for March 2019.
African Continental Free Trade Area (AfCFTA)
On March 21, 2018, nearly 50 African countries signed an agreement to establish the AfCFTA in Kigali, Rwanda, marking a watershed moment in the continent’s economic integration. The establishment of a free trade zone covering Africa generates a single market of 1.2 billion people with a combined GNP of more than $2 trillion (UNCTAD).
U.S. – EAC Trade and Investment Framework Agreement (TIFA)
The United States inked TIFAs with the East African Community (EAC) in 2008 and the Common Market for Eastern and Southern Africa (COMESA) in 2001. Both regional organizations have Kenya as a member. The Africa Office of the United States Trade Representative (USTR) is also coordinating the US attempts to establish a new trade and investment cooperation with the East African Community.
Generalized System of Preferences (GSP)
A wide range of Kenyan-produced products is eligible for preferential duty treatment in Australia, Austria, Canada, Finland, Japan, New Zealand, Norway, Sweden, Switzerland, other European nations, and the United States under the Generalized System of Preferences. Furthermore, Kenyan exports are not subject to any quantitative constraints on any of the 3,000 or so commodities now eligible for GSP status. The United Nations Conference on Trade and Development (UNCTAD) has more information.
Kenya- Poland
Initially, both countries’ relations were mostly managed through international bodies such as the United Nations. Several hundred Kenyans would travel to Poland to study at Polish universities on government scholarships soon after diplomatic relations were established. Both countries signed a Memorandum of Understanding in June 2014 to boost commerce. Since 2016, Kenya has been a top priority for Poland in terms of development assistance. Kenya is one of Poland’s most important sub-Saharan African allies. Poland contributed around 210,000 COVID-19 vaccinations to Kenya in September 2021. Kenya was the first African country to benefit from Polish assistance.
A free trade agreement between the East African Community (which includes Kenya) and the European Union (which includes Poland) was signed in October 2014. The free trade pact is still in the works. Kenya and Poland exchanged a total of $93 million in 2018. Kenya exports tea, canned pineapples, cut flowers, coffee, fish, and sisal bags to Poland. Textiles, manufacturing, electronics, and cars are among Poland’s exports to Kenya. Poland established a commercial office in Nairobi in 2017.
