Kenyan Businesses Poised for Growth as EPA Sensitization Forum Unlocks Path to EU Markets

Monday, 14^th October 2024: The second public awareness forum to sensitize the Kenyan public on the provisions of the European Union – Kenya Economic Partnership Agreement (EPA) will be held on Wednesday, 16^th October 2024 in Mwea.

The EPA-Kenya Sensitization Forums is an initiative aimed at educating Kenyan businesses on the newly signed Economic Partnership Agreement (EPA) between the European Union (EU) and Kenya. This landmark agreement, which entered into force on 1^st July 2024, provides Kenyan exporters with duty-free and quota-free access to the vast EU market, creating unprecedented opportunities for trade and investment.

Ahead of the event, the EU Ambassador to Kenya, H. E Henriette Geiger, highlighted EU’s commitment to fostering a robust trade relationship with Kenya. “Kenya is a vital partner for the EU, not only in trade but also in shared values around sustainable development. The EPA represents a crucial step in levelling the playing field and allowing Kenyan businesses to thrive in the European market. It is our hope that Kenyan businesses will take full advantage of its privileged access to a market of over 400 million consumers across 27 member states.”

The first sensitization workshop was held in Nakuru on 8 October 2024. During the event, Abel Kamau, Trade Manager at the Kenya Association of Manufacturers (KAM), emphasized the significance of the forum in equipping manufacturers with the tools they need to benefit from the agreement. “These sensitization forums are key to helping manufacturers leverage the EPA-Kenya trade agreement. Our goal is to boost export-led growth and ensure Kenyan products, enjoy duty free, quota free marker access to the EU.  For example, industries like apparel and textiles, value-added tea, processed avocados, pharmaceuticals, leather, and frozen fish will now have preferential market access to the EU market. This creates a competitive edge for these sectors and opens avenues for further growth and export diversification.” This initiative, which kicked off in Nakuru, will be rolled out regionally to ensure businesses across the country are informed and empowered to scale up their exports to the EU.”

Mr. Kamau further highlighted the benefits the EPA brings to key sectors of the Kenyan economy including manufactured goods floriculture, fresh produce, services, tea, coffee among others. He also pointed out the importance of addressing the trade imbalance between Kenya and the EU, which stood at €466 million in the EU’s favour in 2023. Kamau called on Kenyan businesses to seize this opportunity to reverse the trend and ensure mutual benefit from the partnership.

The forum also saw participation from Hon. Stephen Muiruri, the County Executive Committee Member (CECM) for Trade, Industry, Marketing, and Tourism in Nakuru County, posed a crucial question to the business community: “How can businesses in Nakuru explore these opportunities?” He pointed out that while exporting to the EU is a valuable goal, businesses must first focus on conquering challenges at home, particularly the cost and ease of doing business. Hon. Muiruri also urged for policies that incentivize Special Economic Zones (SEZ), which would enhance the competitiveness of Nakuru-based exporters under the EPA framework.

Representing the PS State Department for Trade, Michael Mandu, gave an overview of the EPA and its advantages over the Generalized System of Preferences (GSP) that Kenya previously relied on. “Under the GSP, Kenya only enjoyed partial removal of customs duties on two-thirds of tariff lines. This was unpredictable and unsuitable for long-term business planning. The EPA, however, offers a legally binding, duty-free, and quota-free arrangement, providing Kenyan businesses with a stable and predictable trade environment. It covers trade in goods, fisheries, agriculture, economic and development cooperation, and aims to enhance Kenya’s economic integration into the global economy.”

Enock Nyachae, Sustainability Project Manager at Danish Industry (DI), reiterated the importance of aligning Kenyan businesses with global sustainability standards. “In the wake of climate change, businesses must focus not only on reducing carbon footprints but also on embracing Environment, Social Responsibility, and Governance (ESG) practices. The EPA offers a pathway for Kenyan businesses to thrive internationally, but sustainability should be at the heart of these efforts. Achieving net-zero emissions and integrating ESG into business strategies will be key to maintaining competitiveness in the EU market.”

The EPA-Kenya Sensitization Forum marks a new chapter in Kenya’s trade relations with the EU, promising to unlock significant business opportunities across the country. With its regional rollout, more businesses are expected to learn how to navigate the complexities of the agreement and capitalize on the benefits it offers, ensuring that Kenyan products have a lasting impact in the global market.

This event was co-organized by key stakeholders, including representatives from the State Department for Trade, the EU Delegation, state ministries, departments and agencies, and private sector BMOs such as the Kenya Association of Manufacturers (KAM), Danish Industries, Kenya National Chamber of Commerce and Industry (KNCCI), Kenya Private Sector Alliance (KEPSA), Fresh Produce Exporters Association of Kenya (FPEAK), Kenya Flower Council (KFC), Fresh Produce Consortium (FPC), Avocado Society of Kenya (ASOK), and the Agriculture Sector Network (ASNET), among others. Representatives from the Nakuru County Government and various industry leaders were also present to discuss the impact of the EPA on Kenyan businesses and how they can maximize its benefits.

The sensitization forums are scheduled to take place in other counties across Kenya, including Kirinyaga, Kisumu, Machakos, Eldoret, Isiolo, Mombasa, and Nairobi.