Kenya has secured a preliminary deal with China, granting zero-duty access to nearly all of its exports, according to Trade Minister Lee Kinyanjui. This agreement aims to diversify Kenya’s markets and reduce trade imbalances. Under the deal, 98.2 percent of Kenyan goods will enter China without import taxes, including crucial agricultural exports. The agreement is subject to ratification by parliament.
The move comes as Kenya seeks to offset the impact of higher US tariffs. Last year, the US imposed a 10 percent tariff increase on Kenya, and the African Growth and Opportunity Act (AGOA) expired in September. AGOA had provided duty-free access to the US market for cars, clothes, and other items from 32 African countries. Although US lawmakers have approved a three-year extension to AGOA, it has yet to be approved by the Senate or signed into law.
Kenya’s trade relations with China have been under scrutiny, with US Senator James Risch calling for an investigation last year. However, Kenyan officials have dismissed claims that US pressure delayed the deal with China. Foreign Affairs Principal Secretary Korir Sing’oei stated that there is no tension between Kenya’s market access arrangement with China and its push for AGOA reauthorization.
The US has expressed concerns about China’s growing influence in Africa, with Republican Ways and Means Committee Chairman Jason Smith warning that Beijing has made significant investments to “monopolize” the market. Smith called for the urgent finalization of the AGOA deal, citing the need to maintain US trade ties with African countries.
The Kenya-China deal is part of a broader trend of African countries seeking to diversify their trade relationships. Many countries on the continent are increasingly looking to China and other trading partners to reduce their dependence on traditional markets. The deal’s ratification and implementation will be closely watched, as it has significant implications for Kenya’s economy and trade relations with major global powers.
