KEPSA, as part of the EU-Kenya Economic Partnership Agreement (EPA) Private Sector Awareness Campaign team, participated in the first public workshop on 8^th October 2024 in Nakuru. The team will conduct nationwide awareness initiatives in the last quarter of 2024.

The EU-Kenya EPA is a comprehensive collaboration aimed at fostering sustainable development, enhancing trade, and promoting regional stability. Key focus areas include economic growth, environmental sustainability, democratic governance, and social development, with a significant emphasis on trade in goods, particularly in fisheries and agriculture.

This agreement holds significant importance for Kenya, given that the EU, with its 27-member states, represents the largest economy globally, boasting a GDP per capita of €25,000 and a consumer base of 440 million people. The EU is also Sub-Saharan Africa’s largest trade partner, accounting for 23.5% of total trade, with Kenya being a key participant. In 2023, the EU was Kenya’s largest export market, absorbing 13.6% of its total exports. The total trade volume between the EU and Kenya reached €3 billion in 2023, reflecting a 16% increase compared to 2018. EU imports from Kenya, primarily vegetables, fruits, and flowers, amounted to €1.2 billion, while its exports to Kenya, largely in mineral and chemical products, as well as machinery, totalled €1.7 billion. It is important to note that;

• Kenya Export to the EU: all products originating in Kenya are eligible to enter the EU market duty and quota-free.
• EU Exports to Kenya: 82% of goods originating in the EU imported into Kenya will be liberalized in a phased manner over a long transitional period.
• Phase 1 (entry into force of the EPA): EU goods covered by a total of 1934 tariff lines of the HS will be liberalised to zero tariff (mostly already zero-rated under the current EAC CET
• Phase 2: from year 7 to 15, EU goods covered by 1082 tariff lines will be liberalised from 10% to 0%
• Phase 3: from year 12 to 25, EU goods covered by 990 tariff lines will be liberalised from 25% to 0%

In his remarks, Mr. Michael Mandu - Secretary for Trade, Ministry of Trade, Investments and Industry, expressed appreciation for the EU's role in taking in 22% of Kenyan exports. He emphasized the need for the Economic Partnership Agreement to foster balanced trade with sustained exports and imports between the two regions, urging stakeholders to seize the opportunities presented by the partnership.

In his keynote address, Mr. Stephen Kuria Muiruri, CEC for Trade, Tourism, Industrialization, and Cooperatives in Nakuru County, welcomed businesses to invest in the county, highlighting the opportunities available through the EU partnership. He reaffirmed the Nakuru County Government's commitment to creating a conducive business environment to support local investors in scaling internationally while encouraging foreign investments.

The awareness campaign will continue to inform businesses about the opportunities within the agreement, while also identifying any challenges that hinder the full realization of its objectives. The ultimate goal is to establish a robust and strategic trade and development partnership that aligns with the overarching objective of sustainable economic growth and development.