Kenya Secures Duty-Free Access to Chinese Market in New Trade Deal

Kenya has reached a preliminary trade agreement with China, granting 98% of its exports duty-free access to China. This move enhances economic ties amid existing trade imbalances and complements ongoing talks with the U.S. Analysts see this as a strategic shift to improve Kenya's export competitiveness.

Kenya has struck a preliminary agreement with China to secure duty-free access for 98% of its exports to the Chinese market. The Nairobi government announced on Thursday that a full trade deal is on the horizon, signaling closer economic ties between the East African nation and China. The deal, part of China's initiative to remove tariffs on African imports, will allow Kenyan goods to enter the vast Chinese market without duty.

The announcement follows Kenya's President William Ruto's state visit to Beijing last year, where several financing and cooperation agreements were forged. Kenya, aiming to close its trade deficit with China, views this early agreement, referred to as an Early Harvest Arrangement, as a significant step towards enhancing its export potential. The trade ministry highlighted that Kenyan exporters could benefit economically by accessing the large consumer base in China.

Analysts, such as Hannah Ryder from Development Reimagined, suggest these bilateral trade deals will eventually become reciprocal, offering African nations time to build their economies to compete with China. While Kenya is strengthening ties with China, it also maintains close relations with the U.S., negotiating separate trade deals. Nairobi officials have dismissed concerns about potential conflicts between partnerships with the two global powers.