Kenya Free Trade Agreements: A Comprehensive Guide
With Kenya being the economic hub of East Africa, free trade agreements have become a critical component of its trade policy in recent years. A free trade agreement (FTA) is an agreement between two or more countries to eliminate trade barriers and increase economic integration by reducing or eliminating tariffs, quotas, and other trade barriers. Kenya has entered into several FTAs with various countries, and this article will provide a comprehensive guide to the various Kenya free trade agreements.
The East African Community (EAC) Free Trade Area
The East African Community (EAC) is an intergovernmental organization consisting of six countries, including Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan. The EAC FTA was launched in 2010 and aims to create a single market for goods and services within the region. This agreement has significantly increased trade within the East African region, with Kenya being one of the primary beneficiaries. It has also increased cross-border investments and encouraged the development of regional value chains.
Kenya-United States Free Trade Agreement
Kenya is the first African country to sign a free-trade agreement with the United States, which was signed in July 2020. This FTA grants duty-free access to Kenyan goods exported to the United States and the United States to Kenya. The agreement aims to enhance the economic partnership between the two countries and deepen commercial ties. It will create new market opportunities for Kenyan businesses and attract more investment into Kenya.
Kenya-India Free Trade Agreement
Kenya has also been in talks with India to sign a preferential trade agreement (PTA) aimed at increasing trade and investment between the two countries. This agreement will cover trade in goods and services, and investment flows between Kenya and India. The Kenyan government hopes that the agreement will increase the volume and value of trade between the two countries and boost investment in key sectors such as agriculture, manufacturing, and technology.
Kenya-China Free Trade Agreement
Kenya is also in talks with China to sign a free trade agreement aiming to increase trade and investment between the two countries. This agreement will open up new opportunities for Kenyan businesses to access the Chinese market and increase the volume of Chinese investment in Kenya. It is hoped that the agreement will boost trade between the two countries, particularly in key sectors such as infrastructure, agriculture, manufacturing, and tourism.
Kenya free trade agreements are critical components of its trade policy, aimed at increasing economic integration, reducing trade barriers, and boosting trade and investment flows. The above-listed FTAs are just some of the agreements that Kenya has entered into, and there are high chances of signing more agreements with other countries in the future. These FTAs have significantly increased trade and investment within Kenya and with other countries, creating new market opportunities for Kenyan businesses and boosting economic growth.