Agribusiness News

Kenya-EU trade pact boosts agricultural exports as bilateral trade hits KSh494 billion

Kenya’s agricultural sector is poised to reap even greater benefits from expanding trade with the European Union (EU) following the successful implementation of the Kenya-European Union Economic Partnership Agreement (EPA), which has already driven a 20 per cent increase in bilateral trade.

President William Ruto announced that annual trade between Kenya and the EU has risen to US$3.8 billion (approximately KSh494 billion)since the EPA came into force in July 2024, underscoring the growing importance of the European market to Kenya’s export-driven agricultural economy.

Speaking after bidding farewell to outgoing European Union Ambassador Henriette Geiger at State House, Nairobi, the President said the agreement has significantly strengthened economic ties between Kenya and the bloc while opening new opportunities for farmers, exporters and agribusinesses.

“The European Union is Kenya’s largest single export destination and a strategic bilateral partner. Since the signing of the Economic Partnership Agreement, our trade has increased by 20 per cent, bringing annual trade to US$3.8 billion,” said President Ruto.

Agriculture remains the biggest beneficiary of the agreement, with Kenyan products enjoying duty-free and quota-free access to the lucrative EU market. The arrangement allows exporters to ship key commodities such as cut flowers, tea, coffee, fresh vegetables, fruits and other horticultural products without paying import duties or facing quantity restrictions.

The preferential market access has enhanced Kenya’s competitiveness against suppliers from other regions while providing greater certainty for exporters seeking to expand their presence in Europe.

The European Union remains one of Kenya’s most valuable agricultural markets, accounting for a substantial share of the country’s horticultural exports. Kenya is among the world’s leading exporters of cut flowers, with Europe purchasing the majority of its flower exports. Fresh vegetables, avocados, French beans, snow peas and herbs also continue to enjoy strong demand across European supermarkets due to Kenya’s year-round production and adherence to international quality standards.

Tea and coffee producers also stand to benefit from improved market access as demand grows for premium-quality and sustainably produced products. The agreement is expected to encourage greater investment in value addition, enabling more Kenyan firms to export processed agricultural products rather than relying solely on raw commodities.

Industry analysts note that predictable market access under the EPA provides confidence for farmers and agribusiness investors to increase production, modernize processing facilities and adopt internationally recognised food safety and sustainability standards.

Beyond boosting exports, the agreement is expected to create employment opportunities across agricultural value chains, including farming, packaging, cold storage, transport, logistics and export services.

The EPA also supports Kenya’s ambition of expanding manufactured and value-added exports while encouraging technology transfer and private sector investment.

While Kenya exports agricultural products, the European Union supplies machinery, chemical products, mineral products and industrial equipment that support production across various sectors, including agriculture and manufacturing.

Experts say increased access to modern farm machinery, irrigation technologies and processing equipment could help improve productivity and reduce post-harvest losses, which remain a major challenge for Kenyan farmers.

In addition to trade, Kenya and the European Union continue to deepen cooperation in climate resilience, digital innovation and regional security. Climate-smart agriculture has become an important area of collaboration as both partners seek to strengthen food systems against the effects of climate change through sustainable farming practices, improved water management and renewable energy solutions.

President Ruto also praised Ambassador Henriette Geiger for her role in strengthening relations between Kenya and the European Union during her tenure, noting that the partnership had expanded beyond commerce to include broader development priorities.

With the EPA now fully operational, stakeholders in Kenya’s agricultural sector are optimistic that improved market access, stronger investor confidence and continued collaboration with the European Union will accelerate export growth, increase farmers’ incomes and reinforce Kenya’s position as one of Africa’s leading suppliers of high-value agricultural produce.

Moureen Koech
Author: Moureen Koech

Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector

Moureen Koech

About Author

Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector

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