EU Raises Concerns Over Kenya’s Business Environment Amid New Trade Deal

The European Union (EU) has urged Kenya to make serious improvements to its business environment, raising issues like corruption, unpredictable law changes, and heavy taxes.

This call comes even as the EU looks to boost trade ties with the East African nation through a major new agreement.

Speaking to Bloomberg, EU Ambassador to Kenya Henriette Geiger highlighted these concerns. Her remarks came during discussions about the Economic Partnership Agreement (EPA), a deal that grants Kenya duty-free and quota-free access to EU markets.

“We are working to improve the business and investment climate, but right now, Kenya’s environment is not very attractive for investors,” Geiger pointed out.

She warned that while Kenya has been resting on its past achievements, neighboring countries like Tanzania, Rwanda, and Uganda are making big strides and becoming stronger competitors.

Geiger emphasized the need for Kenya to implement important reforms so it can fully enjoy the long-term benefits of the EPA.

“When we look at other countries that signed EPAs with the EU, their trade volumes increased massively compared to those that didn’t,” she added, showing how important it is for Kenya to act quickly.

In her comments, Geiger also stressed the need for stronger partnerships among businesses. She encouraged Kenyan companies to think creatively, form new alliances, and explore fresh business opportunities.

She also called for more variety in Kenya’s exports, which are currently heavily focused on agricultural products like fruits, vegetables, and flowers.

Trade between Kenya and the EU reached €3.4 billion (about Ksh 500 billion) in 2023. This marks a 53% increase over the last 10 years, making the EU Kenya’s biggest trading partner for that year.

Kenya’s exports to the EU stood at €1.4 billion (Ksh 205 billion), mainly consisting of agricultural goods, while imports from the EU totaled €2 billion (Ksh 294 billion), mostly mineral and chemical products and machinery.

The Economic Partnership Agreement between Kenya and the EU was signed in May 2024 at the State House in Nairobi.

The ceremony was attended by President William Ruto and EU officials led by Ambassador Geiger.

During the event, President Ruto expressed great optimism about the deal, saying it had the potential to bring major benefits to Kenya’s economy.

The EPA officially took effect on July 1, 2024. It includes strong commitments on sustainable trade, environmental protection, labor rights, and a fair dispute resolution system.

According to the EU, this makes it the most ambitious agreement they have signed with a developing country when it comes to sustainability promises.

The Kenya-EU agreement also aims to put into action parts of a broader EU-East African Community (EAC) Economic Partnership Agreement. Other EAC countries will have the option to join the deal in the future if they wish.

Join Our Political Forum official 2025 WhatsApp Channel To Stay Updated On time https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30