Kenya officially launched the European Union Economic Partnership Agreement (EPA) Implementation Strategy, setting out a clear roadmap to convert preferential trade access into tangible economic gains, including expanded exports, increased investment, accelerated industrial growth, and enhanced job creation.

The Strategy aims to empower Kenyan businesses to seize opportunities in one of the world’s most lucrative consumer markets.

Principal Secretary for Trade Regina Ombam unveiled the Strategy in Nairobi on behalf of the Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui. The launch event drew together key stakeholders, including EU Ambassador to Kenya Henriette Geiger, TradeMark Africa Kenya Country Director Lillian Mwai Ndegwa, the Kenya Association of Manufacturers (KAM), and representatives from the private sector.

The Strategy builds on the Kenya-EU Economic Partnership Agreement, which took effect on 1 July 2024 and grants Kenyan products duty-free and quota-free entry into the European Union market.

Why Kenya Has Launched the 10-Year EPA Implementation Strategy

At the heart of Kenya’s efforts to maximise the EPA’s potential lies the Kenya-EU EPA Implementation Strategy, a comprehensive 10-year roadmap designed to ensure Kenyan businesses fully exploit duty-free and quota-free access to the 27-member European Union market.

The framework offers exporters, manufacturers, farmers and investors a clear pathway to overcome market access challenges while improving Kenya’s competitiveness in one of the world’s largest consumer markets.

Principal Secretary for Trade Regina Ombam described the roadmap as the “nexus through which we will see the agreement come alive,” noting that it aligns with Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA) by promoting sustainable economic growth, expanding exports and creating jobs.

European Union Delegation Ambassador to Kenya Henriette Geiger called the launch a “significant milestone” in strengthening economic relations between the two partners, adding that the EU remains committed to ensuring the EPA delivers inclusive growth and long-term benefits for both sides.

Despite the EPA entering into force on 1 July 2024, and trade between Kenya and the EU growing by approximately 20 per cent since then, officials stress that market access alone does not automatically translate to increased trade.

Ombam emphasised that businesses must deliberately position themselves to seize the opportunities created by the agreement through coordinated action by government, the private sector, development partners and other stakeholders.

TradeMark Africa Kenya Country Director Lillian Mwai Ndegwa echoed this sentiment, noting that market access alone would not be sufficient unless Kenya strengthens logistics, standards compliance, institutions and trade facilitation.

The strategy therefore provides the coordinated framework needed to translate the EPA from a trade agreement into practical actions that expand exports, strengthen competitiveness, attract investment and create jobs.

How the Kenya-EU EPA Opens a 440 million Consumer Market

The Kenya-EU Economic Partnership Agreement grants Kenyan exports immediate and permanent duty-free and quota-free access to the 27-member European Union market, home to approximately 500 million consumers.

Under the agreement, Kenya enjoys unrestricted access for all its products to the EU market, with the sole exception of arms. In return, Kenya will progressively open its domestic market to imports from the EU over a maximum period of 25 years, with phased liberalisation covering 82.6 per cent of EU imports while protecting sensitive products from immediate competition.

This asymmetrical arrangement provides Kenyan industries with ample time to adjust to increased competition.

The EU is Kenya’s largest single export destination and a strategic bilateral partner. Total trade between the two sides reached approximately $3.8 billion in 2026, with trade growing by 20 per cent since the EPA entered into force. Kenya’s exports to the EU are anchored in higher-value agricultural products including cut flowers, coffee, tea, fresh fruits and vegetables, macadamia nuts, and vegetable oils.

In 2025, Europe accounted for KSh 264 billion in Kenyan exports, driven by increased shipments of fixed vegetable oils to Italy, coffee to Belgium and France, and macadamia nuts to Germany.

Beyond market access, the EPA contains binding commitments on sustainable development, labour rights, and environmental protection. The agreement also provides a stable, predictable framework for trade and investment, with the EU’s investment in Kenya increasing by 61 per cent since 2013.

Why Many Kenyan Businesses Have Struggled to Benefit

Despite the EPA granting Kenyan products duty-free and quota-free access to the EU market since July 2024, many businesses, particularly small and medium enterprises, have struggled to translate this preferential access into tangible export growth.

The agreement has largely favoured a handful of large agribusinesses, while SMEs wrestle with significant non-tariff barriers that erode competitiveness and limit market penetration.

Kenyan exporters face stringent technical regulations that include labelling requirements, pre-shipment inspections, import licensing procedures, rules of origin, and phytosanitary controls. These regulations, imposed to ensure product safety, environmental protection, and consumer health, add considerable compliance costs that disproportionately affect smaller firms.

According to a Kenya Association of Manufacturers survey, many SMEs cited regulatory delays and excessive paperwork as primary obstacles in accessing export markets.

The EU’s stringent sanitary and phytosanitary standards, including pesticide and herbicide residue limits on horticultural products, require costly testing and certification that many SMEs cannot afford. Micro and small enterprises lack the comparative advantage in technology and internal economies of scale needed to meet these requirements, effectively locking them out of the EU market while larger firms can manage the compliance costs.

High logistics costs remain a critical barrier. Kenyan exporters typically spend significantly more to move a container to the Port of Mombasa compared to competitors in countries like Vietnam or Morocco.

Cold-chain logistics remain costly and unreliable, particularly affecting perishable exports such as horticulture and fisheries products. Inspection charges introduced by the Kenya Plant Health Inspectorate Service have further escalated costs for fresh produce, with shipping lines passing these costs on to traders.

Moreover, limited access to trade finance also remains a critical barrier for SMEs.

Many small businesses lack the capital required to invest in upgrades needed to meet EU standards, including modern processing equipment, cold storage facilities, and quality testing laboratories.

Traditional banks often view export-oriented SMEs as high-risk borrowers, making it difficult for them to secure affordable financing for compliance upgrades and market expansion. Many SMEs remain unaware of the EPA’s provisions or lack the technical capacity to meet EU market requirements.

Complex rules of origin paperwork and cumbersome customs procedures make market access difficult for smaller enterprises. The Kenya Association of Manufacturers recently noted that EPA benefits have been unevenly distributed, favouring large exporters while SMEs struggle to access markets or financing.

The structural reality is that tariff preferences alone do not deliver inclusive growth. Vegetables and flowers account for a significant share of Kenyan exports to key markets, but most of these sales are handled by a handful of large agribusinesses.

SMEs, which contribute the majority of employment and a substantial portion of GDP, have been largely sidelined. Government officials have acknowledged that capacity gaps, lack of awareness, limited financing, and inadequate infrastructure have hindered SME participation in export markets.

How the Roadmap Plans to Unlock Exports

The EPA Implementation Strategy provides a structured framework for translating the trade agreement into tangible economic outcomes.

It outlines interventions required to enhance export competitiveness, strengthen production capacity, improve compliance with international standards, facilitate trade and promote investments with a keen focus on small enterprises. The strategy centres on six priority areas designed to systematically address the barriers that have hindered Kenyan exporters.

A key pillar of the roadmap focuses on Sanitary and Phytosanitary Measures, ensuring Kenya’s compliance with EU standards to support trade while mitigating risks to plant, animal, and human health. The strategy also prioritises enhancing Kenya’s capacity to meet EU technical requirements and standards, tackling Technical Barriers to Trade that have historically locked out smaller firms. This includes addressing compliance with stringent regulations on product safety, environmental protection and health, which have added considerable costs to Kenyan exporters.

The Kenya Quality Policy, which harmonises the process of developing standards and technical regulations with international best practice, including those implemented by the European Union, is a key intervention.

The government is also identifying capacity gaps that hinder micro and small enterprises from exploiting the EU market and working closely with relevant agencies to build capacity and create awareness on evolving standards and technical regulations.

The strategy seeks to harmonise customs and trade facilitation procedures to ease the movement of goods.

Digital tools and information and communication technology are being leveraged to facilitate digital trade and improve traceability systems. The goal is to reduce clearance times and compliance burdens that have historically added 25-30 per cent to the cost of international trade. To address gaps in access to information, the strategy includes a nationwide sensitisation drive to equip Kenyan businesses with knowledge on market access provisions, rules of origin, and trade facilitation measures.

These workshops, which have already been held across counties including Nakuru, Kirinyaga, Eldoret, Machakos, Isiolo, Mombasa, and Kisumu, aim to raise awareness of the opportunities the EPA offers and how businesses can leverage them for growth.

The strategy moreover recognises structured commodity trading as a strategic enabler for increasing Kenya’s exports to the EU. It also focuses on Trade and Sustainable Development, ensuring that trade does not undermine the environment and social well-being, and promotes responsible business conduct by all actors. Producer organisations and cooperatives are expected to benefit from cooperation on climate-resilient farming, improved storage, processing, and transport infrastructure.

A central objective of the strategy is expanding Kenya’s export basket from traditional tea, coffee and horticulture into value-added and manufactured products. The strategy aims to diversify export markets from the traditional six countries to at least half of the EU member states within the next decade.

Geiger urged Kenya to ‘venture beyond agriculture’ in its exports and explore high-growth sectors like the creative and digital industries.

International partners are playing a crucial role in implementing the strategy. The European Union is providing technical and financial support to help Kenya meet SPS requirements and build institutional capacity, while promoting sustainable trade practices that encourage climate-friendly production and transportation.

Furthermore, TradeMark Africa is implementing the Business Environment and Export Enhancement Programme under the EPA, designed to support smallholder farmers and producers in cultivating high-quality produce sustainably and getting it to market efficiently. The programme aims to improve export competitiveness, logistics, trade finance, and value addition.

Additionally, TradeMark Africa is implementing the Kenya Enhanced Trade Environment and Inclusion programme with support from Sweden, which promotes port efficiency, improves green trade infrastructure, and enhances the resilience of women- and youth-owned SMEs participating in trade.

Which Sectors Stand to Gain the Most

The EPA opens significant opportunities across multiple sectors, with some industries poised to benefit more than others based on existing capacity, competitive advantages, and market demand. The implementation strategy aims to diversify Kenya’s export basket from traditional tea, coffee and horticulture into value-added and manufactured products.

Kenya’s horticulture sector stands as the most immediate beneficiary of the EPA. The agreement secures permanent duty-free access for cut flowers, fresh fruits, and vegetables, providing long-term predictability for investors and exporters.

The establishment of Export Supply Hubs will provide centralised facilities for aggregation, cold storage, processing, and packaging that comply with international sanitary and phytosanitary standards. These hubs will reduce post-harvest losses and provide on-site inspection and certification services. For smallholder farmers, this means better market access, higher prices, and improved livelihoods.

Traditional agricultural exports coffee, tea, spices, nuts, and edible oils stand to benefit from predictable market access and enhanced support for value addition.

The strategy promotes cooperation on climate-resilient farming, improved storage, processing, and transport infrastructure. Kenyan speciality tea, including purple tea, has already found its way to France, enabling smallholder farmers to multiply their earnings, while coffee shipments to Belgium and France continue to expand.

The EPA promotes cooperation on sustainable management and development of marine, inland, and aquaculture fisheries, including combating illegal fishing and developing processing infrastructure. This creates opportunities for artisanal and small-scale fisheries to access European markets while adhering to sustainability standards increasingly important to EU consumers.

Beyond agricultural exports, Kenya’s manufacturing sector stands to benefit substantially from expanded market access. The EPA provides opportunities for manufacturers of textiles, leather products, and processed foods to enter European markets without facing tariff barriers.

Value addition is a central objective of the strategy. The aim is to expand Kenya’s export basket from traditional agricultural products into value-added and manufactured goods. This shift would increase export earnings, create more skilled jobs, and support Kenya’s industrialisation agenda.

For farmers, particularly smallholders, the EPA offers access to premium European markets, better prices, and opportunities to participate in sustainable value chains. The strategy’s focus on capacity building, climate-resilient farming, and improved infrastructure is expected to enhance productivity and incomes.

Export Supply Hubs will provide aggregation points to ensure consistent supplies, while digital traceability systems will boost buyer confidence. For manufacturers, the agreement provides duty-free access to a vast consumer market, opportunities for technology transfer and partnerships, and incentives to invest in value addition and quality upgrades.

Can the Strategy Transform Kenya’s Export Economy?

The Implementation Strategy targets doubling trade and investment between Kenya and the EU within five years. To achieve this, the strategy aims to diversify export markets beyond the traditional six countries to at least half of the 27 EU member states.

The stable, predictable trading environment created by the EPA is expected to attract more EU investment into Kenya’s manufacturing and processing industries. This would support industrialisation, create employment opportunities, and strengthen Kenya’s position in global value chains.

However, the strategy’s success ultimately depends on swift and transparent implementation. The real test is whether new firms, not just established exporters, can navigate the requirements and start using EPA preferences.

If the roadmap delivers on its promises, it could mark a turning point in Kenya’s economic development, building a more diversified, resilient, and prosperous export economy.