The Kenya- United Kingdom Economic Partnership Agreement(EPA) come into force yesterday.
The Ministry of Industrialization, Trade and Enterprise Development(MoITED) Cabinet Secretary Hon. Maina Betty and UK Prime Minister’s Trade Envoy to Kenya Theo Clarke, MP signed and exchanged the instruments of ratification signifying the conclusion of the requisite domestic processes.
“Kenyan producers and exporters challenged to ensure their exports are sufficiently competitive in terms of quality and pricing, to satisfy demands of the global market as 22nd March 2021 becomes the effective date the Kenya UK EPA comes into force,” said Maina.
Both the UK and Kenya are now expected to sign on the instruments of ratification before depositing the same with their respective government depositories as the deal’s final act.
“We are giving our commitment that the EPA will be implemented in accordance with the terms agreed on to the mutual benefit of people in the two countries.”
According to Theo Clarke, to protect sensitive industries in Kenya, over 1,400 UK exports are excluded from liberalization altogether, meaning they’ll face same tariffs in 2046 as they do now.
She added that the attainment of the pact has been critical for the continued access of Kenyan goods to her home country.
“Without these agreement, key exports from Kenya would immediately be much higher at the market place. This would be damaging when the country is competing with peers enjoying duty-free market access,” she said.
The pact allows Kenya the immediate access to the UK market on duty and quota free terms while UK goods will in the reciprocal see gradual access of up to 25 years to the year 2046.
Kenya has nevertheless locked out part of its nascent industries represented by about 17.4 per cent of its trade in view of protecting the markets from competition by UK goods.
Kenya is backing the deal to scale up its volume of trade with the UK from the current average of Ksh.40 billion per year to Ksh.2 trillion over the life of the deal.