5 Benefits Kenyans Will Enjoy From Ruto Deal With EU
The deal sets the pace for trade liberation, offering tariff-free quota-free access to Kenyan exports to the European Union (EU), which has a population of approximately 500 million people.
Marvin Chege 
President William Ruto on Monday, June 19 presided over the signing of the European Union Economic Partnership Agreement (EPAs), a deal which will see Kenya's exports to Europe expand.
The deal sets the pace for trade liberation, offering tariff-free quota-free access to Kenyan exports to the European Union (EU), which has a population of approximately 500 million people.
“It assures us of an expanded, lucrative and sustainable market, enhancing trade and investment opportunities,” said President Ruto.
He noted that increased trade with the EU will create jobs, expand earnings and stimulate sustainable economic growth, adding that “This is a giant step forward. It sets the stage for the initiation of the EAC partner states into the Agreement.”
President William Ruto, DP Rigathi Gachagua and Trade CS Moses Kuria with European Union (EU) delegates at State House, Nairobi on June 19, 2023 /PCS
The deal which took the last seven months to finalise, had been stuck for nearly 10 years with past administrations.
The development follows President Ruto’s meeting in Brussels in March where the Chief Negotiators were tasked to expedite the outstanding aspects of EPAs with the view of reaching a conclusion by June.
Beyond trade, President Ruto said the Agreement is designed to stimulate investment and manufacturing, assuring that “Kenya is finally ready to take its place as a global player in export-led manufacturing and services."
He encouraged European firms that import goods from Kenya to invest in value-addition and export finished, value-added products out of the country.
The negotiated agreement also anchors Kenya as the natural Hub for European companies seeking markets in the EAC, COMESA, SADC and the African Continental Free Trade Area.
“By locating your investment in Kenya, you will gain market access to the rest of the African continent," he added.
Viral Tea takes a look at how ordinary Kenyans will benefit from the new trade deal:
More Job Opportunities.
The expanded market access provided by the EPAs will lead to increased demand for Kenyan products and services in Europe, which in turn will likely lead to the creation of new job opportunities, especially in sectors such as manufacturing, agriculture, and services.
As European companies invest in value addition and seek to export finished products from Kenya, there will be a need for skilled labour, which leads to an increase in employment rates.
More Money
Kenyan exporters can expect to get more money thanks to the removal of trade barriers. With the EPAs, Kenyan businesses will have the capability of competing more effectively in the European market, as they can now export their goods and services without facing prohibitive tariffs.
The increased export potential translates into higher revenues for businesses, which can then be reinvested to expand operations, improve infrastructure, and provide better salaries for workers.
Sustainable Economic Growth
The trade deal's emphasis on investment and manufacturing holds the potential for sustainable economic growth in Kenya. European firms are starting to recognise Kenya's strategic location and preferential access to regional markets, which could entice them into setting up operations within the country.
The influx of foreign direct investment can stimulate local industries, boost productivity, and foster innovation.
Furthermore, the EPAs position Kenya as a regional hub for European companies seeking to expand their presence in East Africa and beyond, creating additional business opportunities and contributing to long-term economic growth.
Improved Standards of Living
The positive economic impact of the trade deal will have a ripple effect on the lives of ordinary Kenyans, that is with job creation and higher earnings, the standards of living are likely to improve as well as increased disposable income, and enhanced access to goods and services.
This, in turn, can lead to improvements in education, healthcare, infrastructure development, and overall quality of life.
Boost Entrepreneurship & Businesses
The EPAs create a healthy environment for Kenyan entrepreneurs to explore new business opportunities in the European market, with the reduced trade barriers allowing small and medium-sized enterprises (SMEs) to expand their operations and access a larger customer base.
The trade facilitation can also nurture a culture of entrepreneurship, innovation, and competitiveness, driving economic diversification and creating a favourable environment for business growth.
Additional reporting by PCS
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