Kenya and UK finally ratify trade deal

KENYA – Kenya and United Kingdom post-Brexit trade agreement has received approvals from lawmakers of both countries, ending months of anxiety between the business community in Kenya and the UK.

Kenya and the UK penned, a post-Brexit deal on 3rd November 2020, creating way for a long-term treaty that will shield Kenyan exports from the high tariffs that would apply when UK leaves the EU.

Both countries reached a deal on the continuation of duty- and quota-free access of Kenyan exports after the UK finally exits the EU at the end of 2020.

Kenya mainly export flowers and fresh produce to the UK and has thus been keen to secure this market post Brexit.

Available figures indicate that in 2019 Kenya’s exports to the UK in 2019 were coffee, tea and spices, flowers, and vegetables with the UK market accounting for an estimated 43% of total exports of vegetables from Kenya and at least 9% of cut flowers.

“Pleased our Economic Partnership Agreement has passed through both the UK and Kenyan Parliament. We look forward to the exchange of ratification instruments soon. This is a deal which brings significant benefits for Kenyan and British businesses, workers and our economies”

Jane Marriot – British High Commissioner to Kenya

A trade deal between the UK and Kenya will also guarantee continued market access for UK exporters, who sold £815m in goods and services to Kenya in 2019.

With Kenya considered the largest economy in East Africa; it was crucial for London to hasten its deal with Nairobi before opening up the treaty to other East Africa Community (EAC) member states.

While the deal ratification is good news for Kenya, there is discomfort in the other EAC states.
There is stiff opposition within the region, with many claiming that Nairobi’s unilateral deal with London undermines the EAC’s customs union.

Kenya has also begun negotiating with the US for free trade deals, developments that are being keenly followed by investors in Kenya and the region.

In her social media post, British High Commissioner to Kenya Jane Marriott noted that the UK-Kenya trade agreement would bring significant benefits for Kenyan and British businesses, workers, and the economies.

“Pleased our Economic Partnership Agreement has passed through both the UK and Kenyan Parliament. We look forward to the exchange of ratification instruments soon. This is a deal which brings significant benefits for Kenyan and British businesses, workers and our economies.”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.