Booming Kenya-UAE trade hits Sh400 billion mark

Kenya and UAE Strengthen Trade Ties with New CEPA

Kenya is set to diversify its exports and strengthen its trade relations with the United Arab Emirates (UAE) following the implementation of a Comprehensive Economic Partnership Agreement (CEPA). The agreement, signed earlier this year, is expected to unlock opportunities for businesses, create jobs, and position Kenya as a gateway to East Africa.

Sheikh Mohammed bin Zayed Al Nahyan, the UAE ruler himself, will lead the trade relations and cooperation between Kenya and the UAE during his upcoming visit to Kenya in the coming months. This visit aims to cement trade deals worth billions of shillings and enhance work relations.

According to the latest trade figures, in 2023, Kenya exported Sh9.9 billion worth of meat and Sh10.8 billion in fruits and vegetables to the UAE. The CEPA aims to double Kenya's exports to the UAE, particularly in the sectors of meat, fruits, and vegetables, within five years.

The CEPA goes beyond trade in goods, also covering service sectors and potential collaborations. It includes provisions for unlocking service providers in education, transport, construction, and ICT. This facilitates technology transfer and collaboration, positioning Kenyan businesses to compete globally.

Trade between Kenya and the UAE has increased over the last decade. The UAE is Kenya's third-largest trading partner globally, with the main exports to Kenya being petroleum products, machinery, vehicles, and electronics. The UAE is also Kenya's top trading partner in the Gulf region, with a bilateral trade volume worth $3.4 billion (Sh400 billion) in 2023.

The CEPA removes tariffs on over 80% of traded goods between Kenya and the UAE. It is designed to simplify customs procedures and promote industrialisation and regional value chains. This agreement is expected to deepen trade ties, making it easier for Kenyan businesses to export their products to the UAE and vice versa.

In January, President William Ruto and Nahyan signed seven Memoranda of Understanding (MoUs), clearing the path for more economic and investment opportunities. The CEPA has already started open markets, reduced trade barriers, and increased non-oil trade and investments in various sectors.

With the CEPA in place, Kenya is planning to use it to diversify its exports, especially in areas like leather, textiles, and processed foods. This initiative is expected to boost the economy and create more jobs, positioning Kenya as a key player in the East African region.

In conclusion, the CEPA between Kenya and the UAE is a significant step towards strengthening trade relations between the two countries. The agreement is expected to bring about economic growth, job creation, and increased trade in various sectors. The visit of Sheikh Mohammed bin Zayed Al Nahyan to Kenya in the coming months will further cement these relations and open up new opportunities for businesses in both countries.