Kenya has reached a preliminary trade agreement with China that will allow duty-free access for 98.2% of Kenyan exports, according to the country’s Ministry of Trade.
The agreement marks a significant step toward a full bilateral trade deal between Nairobi and Beijing, after Kenya was excluded from China’s list of least developed countries that qualify for automatic duty- and quota-free access, Bloomberg reported.
The move follows President William Ruto’s state visit to China last year, during which Kenya signed several financing and cooperation agreements aimed at expanding trade, infrastructure development and investment ties.
In a statement on Thursday, the trade ministry said discussions with China were ongoing and had already produced a preliminary framework for deeper trade cooperation.
“We have initiated discussions with China to negotiate a bilateral trade agreement,” the ministry said. “These engagements have resulted in a preliminary agreement.”
Kenya’s government has defended closer economic ties with China amid criticism from some U.S. officials. President Ruto has argued that Kenya must diversify its export markets and expand trade with Asia to reduce a growing trade imbalance that currently favours Beijing.
U.S. pressure and AGOA concerns
The talks with China come at a sensitive time for Kenya’s trade policy. Earlier this week, Business Insider Africa reported that Nairobi had slowed progress on finalising the China deal amid pressure from the United States.
Kenya is seeking a renewal of its access to the African Growth and Opportunity Act (AGOA), a U.S. trade programme that has allowed Kenyan exports to enter the American market duty-free for more than two decades. AGOA eligibility is reviewed periodically by Washington.
Officials in Nairobi have viewed the proposed China agreement as a strategic fallback should Kenya face restrictions or delays under AGOA.
Under the preliminary terms reported, China would remove tariffs on key Kenyan exports such as tea, coffee and avocados. This would provide Kenyan farmers and exporters with an alternative major market and help cushion the impact of rising costs and trade uncertainty in the United States.
While negotiations are still ongoing, the deal signals Kenya’s intention to balance its trade relationships as global economic competition intensifies.
