Kenya Secures Key UK Deal: Lower Tariffs to Boost Agricultural Export
Kenya has made a significant stride in its trade relations with the United Kingdom by securing a groundbreaking deal that promises to enhance the country’s export revenue while reducing costs for Kenyan importers. The agreement, unveiled by Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs, Salim Mvurya, marks a pivotal moment in the bilateral relationship between the two nations, particularly in the agricultural and manufacturing sectors.
On Tuesday, September 3rd, CS Mvurya announced that the UK government has agreed to lower the inspection rate for peas exported from Kenya by 5 per cent. This reduction is anticipated to streamline trade processes and boost the competitiveness of Kenyan produce in the UK market. Mvurya highlighted that this decision stems from the UK’s growing confidence in Kenya’s improved management of pesticide residues, which has played a crucial role in enhancing the sampling process.
The reduction in inspection rates is a major victory for Kenya’s agricultural sector, which exports around 350 tonnes of vegetables and cut flowers to the UK each night. With peas, beans, and other leguminous vegetables making up a significant portion of these exports, the new deal is expected to drive further growth in this vital industry.
Beyond agriculture, the agreement extends to the manufacturing sector, with the UK committing to slashing tariffs on whiskies originating from the UK by 10 per cent, reducing the rate to 25 per cent. This move aligns with the Economic Partnership Agreement (EPA) and reflects the UK’s willingness to adapt its trade terms to support the expanding economic ties with Kenya.
Mvurya stressed that this development is part of Kenya’s broader strategy to renegotiate tariffs that have posed challenges in implementing the Common External Tariff (CET) within the East African Community (EAC). He reaffirmed Kenya’s dedication to the ongoing implementation of the Kenya-UK Economic Partnership Agreement, which is set to enhance bilateral trade and diversify exports into new global value chains.
The Economic Partnership Agreement, initially signed in December 2020 and ratified in March 2021, has already yielded significant benefits, saving Kenyan exporters over £10 million (approximately Ksh1.689 billion) annually in duties on key products like green beans and cut flowers. In exchange, Kenya has agreed to gradually reduce duties on UK products deemed non-sensitive, including machinery and pharmaceuticals, to support agricultural development and manufacturing in the country.
The tariff reduction on UK whiskies is also expected to stimulate trade in this sector, with Kenya importing whiskies valued at Ksh3.85 billion from the UK in 2021. This adjustment is likely to further encourage trade, benefiting both UK exporters and Kenyan consumers.
CS Mvurya was joined at the announcement by Trade Principal Secretary Alfred K’Ombudo, Industry Principal Secretary Dr. Juma Mukhwana, and Investment Promotion Authority CEO Abubakar Hassan, underscoring the significance of this agreement in advancing Kenya’s economic interests.
ALSO READ:Ugandan Olympian Fights for Life After Vicious Attack by Boyfriend
Kenya Secures Key UK Deal: Lower Tariffs to Boost Agricultural Export