The EU Ambassador to Kenya urges entrepreneurs to diversify export products to the EU

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Trade

Ambassador of the European Union to Kenya Henriette Geiger is calling on Kenyan entrepreneurs to diversify export products to the European Union for increased profits under the Kenya -EU Economic Partnership Agreement (EPA).

Geiger noted that Kenya mainly exports horticultural produce like flowers and vegetables and underscored the need for exporters to shift to manufactured and high value goods.

The ambassador, who spoke during a Kenya -EU EPA sensitization forum held in Athi river in Machakos county said the agreement presents an opportunity for Kenya to build capacity in terms of industrialisation and move to an upper middle level income country. “Kenya harbors ambition to become an upper middle level income country and this can be achieved by the setting up of companies to manufacture and process products,” she said.

Geiger hailed Machakos as one of the counties that has recognised the strategic opportunity offered by EPA by setting up Special Economic Zones and called on other counties to do the same. “These special economic zones present exceptional opportunities that will drive manufacturing and other counties should embrace the move,” said the ambassador.

She assured Kenya of EU’s support in the implementation of EPA and said similar sensitization forums will be conducted in Europe to bring investments to Kenya to upscale trade between the parties.

“I appeal to the Kenyan Government to partner with the private sector and create an enabling environment for business to thrive. Kenya is blessed with the best private sector in Africa, and that’s why many companies are setting up firms in the country,” said Geiger.

Speaking at the same forum Director of External Trade, State Department for Trade Joseph Rotich said the agreement has given Kenyan exporters unlimited access to the EU market for all products. “The agreement had legally secured a quota free and duty free market to 27 countries in the European Union,” said Rotich.

He said EPA will help expand the country’s industrial base and access to markets not only to the EU but also other countries including the US. Rotich reiterated the State Department’s commitment to fully implement the agreement and disclosed that plans are at an advanced stage to roll out an EPA implementation strategy.

“EPA also has a strong interface with African Continental Free Trade Area(ACFTA) and Tripartite Free Trade Area(TFTA) which will give EU investors in Kenya access to the African markets,”he noted.

Also present was Kenya Association of Manufacturers (KAM) acting Chief Executive Officer (CEO) Tobias Alando who hailed EPA as an opportunity for Kenyan manufacturers to not only export directly to the EU but also establish joint ventures with EU companies to set up firms in Kenya.

“This is a great opportunity to develop the manufacturing sector in Kenya and we are also calling upon counties to develop policies that create an enabling environment for the manufacturing sector to thrive,” said the action CEO. Chief Executive Officer (CEO)Fresh Produce Exporters Consortium of Kenya Okisegere Ojepat called on Kenyans to take advantage of the agreement and upscale production to access the market.

Ojepat noted that exports to the EU had declined in the recent past mainly due to the changing regulatory framework but expressed that EPA will address the challenge. “There is a need for us to scale our exports and ensure consistent supply to the 27-Country economic bloc and also call on farmers and exporters to comply with the standard to access the markets,” he added.

The CEO called on both the county and the national governments to put in place a regulatory framework that will facilitate farmers and exporters to access the EU market. In attendance also was Machakos County Secretary Dr. Muya Ndambuki among other government officials and key stakeholders from the public and private sector.

The forums are being conducted across the country to create awareness of the opportunities unlocked by EPA.