EPA
The Government is set to embark on a nationwide sensitization module aimed at appraising the Kenyan business community on the vast opportunities presented by the European Union (EU) Economic Partnership Agreement (EPA).
This strategic initiative will provide comprehensive insights into the benefits and potential of the agreement, which promises to open new markets for Kenyan products across all 27 European Union member states.
Cabinet Secretary (CS) for Trade, Investments and Industry, Salim Mvurya, termed the engagement as basically meant to inform the public that the EU Ambassador to Kenya, Henriette Geiger, had paid a courtesy call to the CS after the signing of the Economic Partnership Agreement back in December 2023, which became effective on the 1st of July 2024.
According to Mvurya, part of the discussion was to appreciate the EU for the partnership agreement, which is very critical to open new markets, for Kenya products. Another part of the discussion was also to agree on a framework that is going to roll out sensitization so that many of Kenya’s business people and investors can be aware of the opportunities that exist within that EPA.
“Sensitization will not only take place in the private sector but also Government Agencies and Ministries. The dates of the sensitization will be announced soon as this was just a meeting to appraise each other on the issues to be looked at,” added Mvurya.
The CS revealed that the 900 page EPA document, has opportunities for different Ministries and the sensitization, will allow public agencies to take their rightful role in the implementation of the agreement. Under Kenya’s business development programme, Mvurya thanked the EU for the 25 million Euros financing, which makes it a great partner to access each other’s market and also in development programmes such as infrastructure.
Speaking at the joint presser, the EU Ambassador noted that the EPA provides a unique opportunity for Kenya’s business community to access the European market duty-free and once fully embraced and adopted, this agreement will significantly increase employment opportunities and strengthen economic ties between Kenya and the EU.
Through this EPA, Geiger affirmed that the EU will help to contribute to increased job opportunities and growth in Kenya and therefore, needs to be given feasibility, so that people know about it both in the private and public sector.
Consequently, she announced a high level Trade Mission from Brussels coming to Kenya at the beginning of September for both parties to have talks and set up the operational structure of this EPA, which is a totally new chapter and level operation between the two sides.
The Mission will work closely with the Ministry to formulate a robust operationalization structure for the EPA, ensuring that Kenyan businesses can fully capitalize on the opportunities available in the European market. “We will also do a series of sensitization events around the country, to make sure that Kenyan operators and people can take optimal advantage of that agreement,” she disclosed.
Geiger announced that the first sensitization event will be at Strathmore University, where a mix of stakeholders will be led through the EPA with different elements and what it means for the operators. The EU Ambassador stated that the first priority is to set up the government structure for the agreement to be steered in order to address issues at the technical and political level.
“Import duties will still be applicable for several agricultural products from Europe in order to protect local farmers,” stressed Geiger, adding that food security can still be maintained, as about 25 percent of food import from Europe in addition to textile is excluded from the agreement and therefore cannot be duty free.
She cited the aforementioned as one of the defense measures that can be adopted by both parties if there is a sudden increase of imports that can affect local production and exports.
On subsidization, Geiger noted the existence of a specific provision in the agreement that EU commits to no subsidized exports especially agricultural products, that is, sensitive products are excluded and Kenya has approximately 7years to get ready for this through access to European Markets.
On the regional block reluctant to join the agreement, she assured the public there are no legal challenges from the East Africa countries, insisting that currently, Rwanda has shown interest to join and hopes the other countries will follow. “This is because the East Africa countries could not sign as a block and therefore Kenya has a dispensation to sign on its behalf just like any other country that is interested to join the agreement,” reiterated Geiger.
She re-affirmed that the Kenyan market has been secured for years with an example being that agricultural products only come from Kenya to the EU and imports mainly machinery. In a quick rejoinder, Mvurya revealed that there will be other sensitization meetings in the region after the first one in Strathmore beginning with Nakuru and other places to be communicated later, to meet the private sector.
“This will give an opportunity for them to understand the opportunities presented by the EPA in improving Kenya’s access to markets in the EU and also unpack the key areas of the EPA so that they can be understood and people can ask questions,” said the CS.
In addition to the government and technical structures to help in implementing certain clauses of the agreement, Mvurya said that the parties will be looking at the key messages in terms of the opportunities that exist in both countries. He further stressed that all agricultural products are excluded from imports in order to protect sensitive products from the country.