Cabinet Secretary for Industrialisation, Trade and Enterprise Development Betty Maina with UK's International Trade Minister Ranil Jayawardena during the signing of the new Kenya-UK trade deal in London, United Kingdom. Also present is Kenya's High Commissioner to the United Kingdom Manoah Esipisu. PHOTO | POOL
Kenyan fresh produce will enjoy duty free export to the UK post Brexit, and secure the Sh220 billion trade with the European nation following a new deal signed on Tuesday.
"This deal is very important for us. We negotiated for duty free, quarter free entry of Kenyan fresh produce into the UK and we got that," Mr Hosea Machuki, the CEO of the Fresh Produce Exporters Association of Kenya (FPEAK), told delegates at the Kusi Ideas Festival in Kisumu.
"We see potential for increase of our fresh produce to the UK by five percent by 2025 and this will assist growers, traders and exporters," Mr Machuki said.
He added that about 40 percent of flowers in the UK come from Kenya and the country needs to market its products better to get more buyers. Last year, Kenya exported fresh produce worth Sh153 billion.
This year, due to the weakening of the Kenyan shilling, the exporters have seen a quick recovery, having already exported goods worth Sh139 billion in the nine months. The FPEAK boss said that the sector expects to close the year at Sh145 billion, and would have had a record year were it not for the Covid-19 disruption.
Mr Machuki revealed that his association has asked the National Treasury to allocate the Sh1.5 billlion given to the sector by President Uhuru Kenyatta in the Covid-19 mitigation measures, to help them cut down freight charges to the UK and Netherlands by at least one dollar.
Kenya and the UK signed the strategic Economic Partnership Agreement (EPA) on December 8 in London, following the conclusion of negotiations between the two countries.
The partnership agreement with the UK will also deepen the East African Community (EAC) integration by ensuring that exports from the EAC countries continue to enjoy duty and quota free access to the UK and the EU markets, when the UK leaves the EU on December 31, 2020.
The agreement will also enhance privileges for agricultural goods and confer originating status to EAC exports, including Kenya's key flowers and fresh produce, even if they pass through any of the 27 EU countries.
In addition, the agreement recalls Kenya's commitments within the framework of the World Trade Organization and will support African countries to realise their dream of an African Economic Community under the Africa Continental Free Trade Agreement.
The agreement will secure the mutual interests of the two partners after Brexit, and replicates the effects of the East African Community EPA with the European Union that facilitates EAC exports, free of duties and quotas, to the European Union market.
When ratified and fully implemented, the agreement is expected to deliver significant benefits to Kenya and its partners in the EAC region.
President Uhuru Kenyatta and the UK Prime Minister Boris Johnson earlier this year agreed to negotiate a framework that will enhance trade and development cooperation between the UK and the EAC partner states.
"We have agreed on a comprehensive package of benefits that will ensure a secure, long term and predictable market access for exports originating from the EAC free trade area," Betty Maina, the Industrialisation Cabinet Secretary said in a statement from London.
"We have a great opportunity ahead of us, to realise the mutual benefits that our two leaders, envisaged when they agreed on the need for a post-Brexit partnership framework."
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