EU urges Kenya to address policy instability and graft
While rallying support for the agreement, Geiger emphasized that the reforms were essential to ensure the EPA would have a lasting positive effect on the nation’s economy.
The European Union has called on Kenya to enhance its business environment, raising concerns over corruption, constant changes in legislation, and burdensome taxation. This comes as the bloc looks to deepen trade relations with the East African country.
EU Ambassador to Kenya, Henriette Geiger, shared these concerns during an interview with Bloomberg, amid ongoing negotiations on an Economic Partnership Agreement (EPA) that would allow Kenya duty-free and quota-free access to European markets.
"We are working to improve the business and investment environment, which is currently not very favorable in Kenya," Geiger stated.
"Others are not sleeping. Tanzania, Rwanda, and Uganda are catching up fast and are becoming more and more competitive, while Kenya is resting a bit on its laurels," she added.
While rallying support for the agreement, Geiger emphasized that the reforms were essential to ensure the EPA would have a lasting positive effect on the nation’s economy.
"In countries that signed EPAs with the EU, we observed remarkable growth in trade volumes compared to those without such agreements," she noted.
Additionally, she underscored the importance of stronger collaboration among trading partners and advocated for a broader range of Kenyan exports, pointing out that they were largely dominated by agricultural products.
"We need to make sure that the economic operators are putting their heads together and forming new alliances, looking at new business opportunities, and also Kenya needs to diversify its exports," Geiger expressed.
Trade between Kenya and the European Union reached €3.4 billion (Sh500 billion) in 2023, reflecting a 53 percent growth over the past ten years, based on EU statistics.
This made the EU Kenya’s largest trading partner that year.
In 2023, Kenya's exports to the EU amounted to €1.4 billion (Sh205 billion), consisting primarily of fresh produce such as vegetables, fruits, and cut flowers. In return, Kenya imported goods worth €2 billion (Sh294 billion), mainly including machinery, chemical products, and minerals.
The Economic Partnership Agreement (EPA) between Kenya and the EU was officially signed in May 2024 at State House, Nairobi.
The event was attended by the EU delegation to Kenya, led by Ambassador Geiger.
President William Ruto, who presided over the ceremony, voiced strong confidence in the deal, emphasizing its significant potential benefits for Kenya’s economy.