The United Arab Emirates (UAE) is set to firm its grip as one of Kenya’s export markets with a scheduled new economic partnership agreement (EPA) with Nairobi, that would further ease trade between the two countries.
State House on Monday indicated that President William Ruto would sign an EPA with the UAE as part of a trip to the Middle East country, which has become the second-largest export market after Uganda on re-exports of jet fuel.
“During the visit, Kenya and UAE are expected to sign a comprehensive EPA, which will foster increased trade, investment, and development cooperation between the two countries,” Statehouse spokesperson Hussein Mohamed said in a statement.
President Ruto left to attend the Abu Dhabi Sustainability Week summit, which the government reckons remains one of Kenya’s largest export destinations due to its huge demand for Kenyan tea, meat products, fruits, vegetables, and flowers.
The UAE crossed the US, Pakistan, Netherlands, and Tanzania to become Kenya’s second largest export destination last year, with trading data for the nine months to September 2024 showing that Kenya exported Sh86.89 billion in goods to the market.
“The agreement is expected to further simplify export procedures, enhance market access for trade in services, and stimulate increased investments from the UAE across several sectors,” State House said.
Market access and a simplification of procedures have the potential to enhance UAE’s grip on Kenya’s export market, even as it continues to supply Kenya with fuel under the government-to-government oil importation framework.
This was a 118.78 percent increase in exports to the market, up from Sh39.7 billion a year earlier.
During the visit to Abu Dhabi President Ruto is also expected to address global leaders on issues around renewable energy “and identify opportunities for global partnerships to address energy challenges and foster green growth.”
During the nine months, Kenya exported Sh67.52 billion to the US, Pakistan (Sh59.89 billion), the Netherlands (Sh57.05 billion), and Tanzania (Sh49.48 billion), according to the Kenya National Bureau of Statistics (KNBS) balance of payment report for the third quarter of 2024.
The KNBS data show that Kenya’s top sales to the Emirates were largely re-exports of kerosene-type jet fuel, goat meat, and fermented black tea, but the bureau attributed the strong growth to “increased re-exports of kerosene-type jet fuel”.
“President Ruto will also hold high-level bilateral discussions with key global leaders, including His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and Malaysian Prime Minister Anwar Ibrahim. These discussions will focus on strengthening cooperation in energy, trade, investment, and technology which are key pillars of Kenya’s Bottom-up economic transformation agenda,” Mr Mohamed stated.