Home BUSINESS China grants Kenya zero-duty access for 98.2% of its exports

China grants Kenya zero-duty access for 98.2% of its exports

0
99

President William Ruto and his counterpart, Chinese President Xi Jinping

Kenya has achieved a significant trade milestone after reaching a preliminary agreement with China that will grant most Kenyan exports duty-free access to the world’s second-largest economy.

In a statement issued on Thursday, January 15, 2026, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui announced that negotiations between the two countries had resulted in an “early harvest” trade framework. Under the agreement, 98.2 per cent of Kenyan goods will enter the Chinese market at zero duty.

The breakthrough comes amid China’s recent move to extend duty-free and quota-free (DFQF) market access to African countries—a policy that largely favours Least Developed Countries (LDCs) and excludes developing economies such as Kenya.

“To address this imbalance, Kenya initiated discussions with China to pursue a bilateral trade arrangement that mirrors the benefits enjoyed by our East African Community partners and other African nations,” Kinyanjui said.

He noted that the talks had culminated in a preliminary deal that significantly levels the playing field for Kenyan exporters. “This early harvest framework represents a major step forward and underscores China’s commitment to deepening our trade relationship,” he added.

Reducing trade barriers

According to the Cabinet Secretary, the agreement corrects a long-standing structural disadvantage that limited Kenya’s access to preferential treatment in the Chinese market, unlike several neighbouring countries classified as LDCs.

Cabinet Secretary Lee Kinyanjui

By lowering tariffs, the new framework enhances Kenya’s competitiveness and opens up opportunities for a wide range of products across multiple sectors.

Agriculture and employment gains

The agricultural sector is expected to benefit most immediately from the zero-duty access. As the backbone of Kenya’s economy and a key source of employment, agriculture stands to gain from increased exports and product diversification.

Kenyan exporters are anticipated to expand shipments of tea, coffee, horticultural produce, processed foods and other value-added products to China. The government projects that improved market access will boost production, attract investment into export-oriented industries and generate substantial employment along value chains.

“The zero-duty access will unlock immense economic potential for Kenyan exporters, particularly in agriculture, which remains central to our economy,” the statement said. “This development is expected to create jobs and deliver tangible benefits to the wider economy.”

The government reaffirmed its commitment to pursuing strategic trade opportunities and strengthening global partnerships, expressing optimism that the agreement will positively impact Kenya’s economy and the wellbeing of its citizens.

NO COMMENTS