The glaring realities of massive trade imbalance between Kenya and the European Union (EU) trade bloc comprising 27 European countries has been overshadowed during the two-days inaugural business-to-business event organised as part of the EU Global Gateway strategy officiated by president William Ruto in Nairobi earlier today.
The event dubbed ‘EU-Kenya Business Forum’, the first of its to be held was attended by high ranking government and business council officials from the EU bloc even as Kenyan exporters to the EU face difficulties in complying with the EU’s labelling requirements, phytosanitary control and rules of origin.
Currently, Kenya continues to import manufactured and finished products like electronic products, optical products, crude petroleum and natural gas, chemicals and chemical products, machinery and equipment, electrical equipment and basic metals among others.
On the other hand, the main exports from Kenya to EU are agricultural products fresh flowers.
During the launch, president Ruto called for expeditious conclusion of Economic Partnership Agreements with EAC by the EU to enable Kenya expand its export base.
The event was attended by about 500 business people from Kenya and the European Union.
The business forum was organized by the European Union in partnership with the Kenya Private Sector Alliance (KEPSA) and the European Business Council.
President Ruto told the European Union Business Council that Kenya offers a unique opportunity for trade across East Africa, given its strategic position in the region, and that it would be in the EU’s best interest to conclude the pending deals.
“This is why it is also important that the EU undertake a fresh push to conclude the Economic Partnership Agreements with the East African Community. Access to the EU market would enable Kenya to expand its export base, thereby multiplying employment opportunities and strengthening its balance of trade.” President observed.
The President also called for regular engagements, so as to boost trading between Kenya and EU, noting that EU is the biggest destination for Kenya’s exports at Sh170bn in 2021.
At the period the president said the EU imports stood at 16.5 per cent, an increase from the previous year.
“Kenya and the EU are engaged in a fairly vigorous trade regime; it is only reasonable that as business partners on such a scale we should be engaging more,” he added.
The Head of State further reported that trading with the EU helps Kenya create millions of direct jobs and indirect jobs in the tea, coffee, cut flowers and peas value chains, which are Kenya’s main exports.
KEPSA Chief Executive Officer Carole Kariuki said that the private sector is seeking to establish strong partnerships that would further open up trade and investment opportunities between Kenya and the European market.
“At the same time, we work on the overall business environment of Kenya and collaborate with the Government to make the country more competitive and attractive for investors.” Kariuki noted.
“The EU-Kenya Business Forum is a unique opportunity for Kenyan and EU companies to partner and learn from each other whilst doing business. Kenya provides a unique opportunity for trade across East Africa given its position. EU-based businesses here continue to work with Kenya to increase export opportunities and to ensure high quality Kenyan products hit the shelves in many shops and supermarkets.” Darren Gillen, Chair of the European Business Council said.
Among those present include European Investment Bank Vice-President, Thomas Östros, Trade, Investments and Industry Cabinet Secretary Moses Kuria, Foreign Affairs Cabinet Secretary Alfred Mutua and the French Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad Olivier Becht.
The event which ends tomorrow comes in the wake of damning revelation of smuggling of unsafe plastic clothes dumped in Kenya from EU to a tune of 37 million tonnes annually.
The report released last week following an investigation of trade data has dubbed, ‘ Trashion: The stealth export of waste plastic clothes to Kenya,’ showed that 37 million items of junk plastic clothing are illegally sneaked into the country in every year.
They are said to be too dirty or damaged to be reused.
The dumping of these garments—including those branded by big names like H&M, Nike and Yves Saint Laurent—has been creating serious health and environmental problems for vulnerable communities.
The investigation was carried out by Clean Up Kenya and Wildlight for the Changing Markets Foundation (CMF).