The trade pact between Kenya and United Kingdom will permit British firms to ship in goods duty-free for 25 years.
The trade pact with the United Kingdom will, however, give leeway for companies in UK to flood Kenya’s market with both finished and unfinished goods, excluding farm and industrial products, at the expiration of the seven-year moratorium.
While revealing the details of the pact, the Industrialisation, Trade and Enterprise Development ministry revealed details of the deal asked the Parliament to validate the Economic Partnership Agreement (EPA) that was signed between Kenya and the United Kingdom of Great Britain and Northern Ireland (UK).
Kenya signed a post-Brexit trade pact with the United Kingdom in December 8, 2020 to preserve duty and quota-free access of exports, after the UK officially exited the European Union (EU) on December 31.
In a memorandum accompanying the EPA, which was presented in the parliament for ratification on December 22, 2020, Cabinet Secretary Betty Maina explained that we “Kenya is offering to open 82.6 per cent value of total trade to the UK over an extended transition period (up to 25 years with a seven- year moratorium) constituting of mainly raw materials, capital goods, intermediate products and all other essential goods.”
The National Assembly’s Trade, Industry and Cooperatives committee recently presented its report on its consideration of the EPA, thereby setting the platform for debate by the House.
UK and Kenya Parliaments need to validate the pact before it takes effect though the House of Lords has given its backing for a proposal by its International Agreements Committee calling for a 21-day extension of the initial February 10, 2020 deadline.