Kenya Strikes Trade Deal With China

Kenya has reached a preliminary trade agreement with China that will allow 98.2% of Kenyan export goods to enter the Chinese market duty-free, the trade ministry said on Thursday.

The ministry said the deal is the result of ongoing discussions between the two countries and could lead to a full bilateral trade agreement in the future.

“We have initiated discussions with China to negotiate a bilateral trade agreement,” the ministry said in a statement.

“These engagements have resulted in a preliminary agreement.”

A preliminary trade agreement is an early-stage deal between countries. It sets out initial terms, such as tariff reductions or market access, while negotiations continue toward a broader and legally binding trade pact.

Such agreements are often used to test cooperation, build confidence and deliver quick benefits before a full agreement is finalised.

President William Ruto made a state visit to Beijing last year, during which Kenya and China signed several financing and cooperation agreements.

Ruto has defended closer relations with China amid criticism from some U.S. officials, saying g Kenya has to export more goods to the Asian economy to close a trade gap heavily tilted in Beijing’s favour.

“We have concluded the high-level conversation with China. They have agreed to a reciprocal arrangement between Kenya and China. They have agreed to remove all the tariffs on our tea, coffee, avocado, and other agricultural exports. That’s a major breakthrough for us,” Ruto said.

“When I sat with President Xi, we had a very candid conversation. I told him that Kenya is importing Sh600 billion worth of products from China, but is only sending about 5 per cent of our exports there. That’s a serious trade imbalance… that’s why they have opened up their market for our agricultural products.”