Kenya has reached a preliminary trade agreement with China that will allow most Kenyan goods to enter the Chinese market duty-free, in a move expected to significantly boost exports, create jobs and help narrow the country’s trade imbalance.
In a statement issued on Wednesday, Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the agreement would grant Kenyan products zero-duty market access on 98.2 per cent of tariff lines under an “early harvest” framework negotiated with Beijing.
The deal follows recent moves by China to grant duty-free and quota-free (DFQF) market access to African exports. However, Kenyan officials noted that the Chinese policy primarily benefits Africa’s Least Developed Countries (LDCs), placing developing economies such as Kenya at a disadvantage.
To address this gap, the Kenyan government initiated bilateral talks with China aimed at securing terms comparable to those enjoyed by its East African Community neighbours and other African countries that qualify for preferential access.
“These engagements have resulted in a preliminary agreement that allows for 98.2 per cent zero-duty market access for Kenyan goods,” Kinyanjui said, describing the outcome as a major step in deepening trade relations between the two countries.The Cabinet Secretary said the zero-duty access is expected to unlock significant opportunities for Kenyan exporters, particularly in agriculture, which remains the backbone of the country’s economy. He added that the agreement would support efforts to diversify Kenya’s export basket beyond traditional products, while stimulating value addition and manufacturing.
Officials expect the deal to generate new employment opportunities across export-oriented sectors and deliver broader economic benefits as Kenyan firms gain improved access to one of the world’s largest consumer markets.
The government said the agreement underscores China’s commitment to strengthening economic ties with Kenya and reflects Nairobi’s broader strategy of expanding its global export footprint to reduce persistent trade imbalances.
Kinyanjui reaffirmed the government’s commitment to pursuing trade partnerships that enhance Kenya’s competitiveness and promote inclusive economic growth.
“We look forward to the positive impacts of this agreement on our economy and the wellbeing of our citizens,” he said.