Kenya has struck a fresh trade deal with China, reopening export doors for farmers and signalling a broader push to balance global trade ties.
The agreement, announced on Thursday, focuses on expanding Kenya’s access to the Chinese market, particularly for agricultural produce, a sector the government says remains the backbone of the economy and a key employer.
Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said the deal reflects President William Ruto’s administration’s long-standing commitment to bilateral arrangements that translate into tangible gains for ordinary Kenyans. He described the agreement as a strategic correction to earlier trade frameworks that left Kenya exposed.
UNFAVOURABLE
According to Kinyanjui, Nairobi had deliberately declined to rush into a previous China-led trade arrangement, arguing it disproportionately favoured Africa’s least developed countries while sidelining economies such as Kenya’s, which has recorded steady growth in recent years.
“The government has been deliberate in expanding Kenya’s export basket globally to address persistent trade imbalances,” Kinyanjui said, noting that Kenya’s economic profile required a more tailored approach.
He explained that while China recently announced duty-free and quota-free market access for African goods, the framework largely benefited least developed countries, effectively locking out developing economies. That gap, he said, prompted Kenya to pursue direct bilateral negotiations.
Those talks have now yielded what Kinyanjui termed an “early harvest” agreement, granting 98.2 per cent zero-duty market access for Kenyan goods entering China.
“This is a monumental progression and a strong signal of China’s commitment to deepening trade relations with Kenya,” he said.
DUTY FREE ACCESS
The CS said the zero-duty access is expected to unlock significant opportunities for exporters, enable diversification beyond traditional commodities, and stimulate job creation, particularly in agriculture and value-added processing.
Separately, Kinyanjui welcomed the United States House of Representatives’ decision to extend the African Growth and Opportunity Act (AGOA) for three years, calling it a critical boost for US–Africa trade relations.
He said the extension restores certainty to Kenya’s textile and apparel sector, which employs more than 80,000 people directly and about 250,000 indirectly through Export Processing Zones.
“The uncertainty that had engulfed the sector will now give way to renewed confidence and expansion,” Kinyanjui said.
ECONOMIC STRATEGY
He added that the government is keen to broaden Kenya’s exports under AGOA beyond textiles, as talks continue with Washington on a bilateral trade agreement covering additional sectors.
Kenya’s major exports to the US include apparel, coffee, tea, horticultural products and tourism services, with officials insisting that export diversification remains central to the country’s long-term economic strategy.
