Kenya, UAE forge landmark agreement to boost economic ties
KENYA – Kenya and the United Arab Emirates (UAE) have formalized a transformative Comprehensive Economic Partnership Agreement (CEPA), marking a significant step in strengthening economic ties between the two nations.
Signed on January 14, 2025, by Kenyan President William Ruto and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the agreement represents the UAE’s first trade pact with a mainland African country.
In a post on X, President Ruto emphasized the importance of the deal, stating: “The signing of the historic Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) will deepen trade ties between the two nations by simplifying trade procedures, promoting industrialisation and stimulating investment.”
“It is expected to more than triple Kenya’s exports of meat products, fruits, vegetables, cut flowers, tea, and coffee once implemented.”
The CEPA builds on an already robust trade relationship. In 2023, trade between Kenya and the UAE reached Ksh. 445 billion (USD 3.44 billion), with the UAE emerging as Kenya’s sixth-largest export destination and second-largest source of imports.
The UAE accounted for 16% of Kenya’s total imports, while Kenya exported Ksh. 9.9 billion (USD 76.59 million) worth of meat, Ksh. 5.6 billion (USD 43.33 million) worth of flowers and vegetables, and Ksh. 5.2 billion (USD 40.23 million) worth of fruits to the Gulf nation.
Bilateral non-oil trade between the two countries hit USD 3.1 billion in the first nine months of 2024, reflecting a 29.1% increase from the same period in 2023.
For Kenya, this agreement comes at a critical juncture as the country seeks strategic partnerships to boost infrastructure and economic growth.
The UAE’s diversification strategy, aimed at reducing reliance on fossil fuels, aligns well with Kenya’s ambition to modernize infrastructure and expand trade.
Under the CEPA, Kenyan businesses will gain duty-free and quota-free access to the UAE market, enhancing exports of agricultural products, manufactured goods, and services.
The agreement is also expected to attract foreign direct investment in sectors such as energy, agriculture, healthcare, logistics, and information technology.
Beyond trade, the CEPA includes a focus on sustainability. Both nations are committed to adopting clean technologies and environmentally friendly practices.
This aligns with Kenya’s emphasis on renewable energy and sustainable agriculture, areas where the two countries can collaborate for mutual benefit.
President Ruto has also announced plans to involve the UAE in extending Kenya’s Standard Gauge Railway to Uganda and South Sudan.
This collaboration could play a pivotal role in advancing Kenya’s Bottom-Up Economic Transformation Agenda (BETA).
The UAE’s CEPA with Kenya is part of its larger strategy to strengthen global trade partnerships. On the same day, the UAE signed agreements with Malaysia and New Zealand.
Each partnership targets specific goals, including investments in technology, logistics, and sustainable development.
For Kenya, the CEPA complements other trade agreements, such as the African Continental Free Trade Area (AfCFTA), the Kenya-EU Economic Partnership Agreement, and the Kenya-UK Economic Partnership Agreement.
These agreements collectively position Kenya as a key player in global trade, offering access to markets worth trillions of dollars.
“By boosting the export of Kenyan perishable goods like flowers, fruits, and vegetables to the UAE, it will likely open up more opportunities for Kenyan farmers and exporters,” said Sanjeev Gadhia, CEO of Astral Aviation.
He added that the CEPA would enhance the UAE’s access to fresh, high-quality products while fostering economic growth for both nations. Gadhia also highlighted plans to increase cargo capacity to meet rising demand.
Kenya, UAE forge landmark agreement to boost economic ties
KENYA – Kenya and the United Arab Emirates (UAE) have formalized a transformative Comprehensive Economic Partnership Agreement (CEPA), marking a significant step in strengthening economic ties between the two nations.
Signed on January 14, 2025, by Kenyan President William Ruto and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the agreement represents the UAE’s first trade pact with a mainland African country.
In a post on X, President Ruto emphasized the importance of the deal, stating: “The signing of the historic Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) will deepen trade ties between the two nations by simplifying trade procedures, promoting industrialisation and stimulating investment.”
“It is expected to more than triple Kenya’s exports of meat products, fruits, vegetables, cut flowers, tea, and coffee once implemented.”
The CEPA builds on an already robust trade relationship. In 2023, trade between Kenya and the UAE reached Ksh. 445 billion (USD 3.44 billion), with the UAE emerging as Kenya’s sixth-largest export destination and second-largest source of imports.
The UAE accounted for 16% of Kenya’s total imports, while Kenya exported Ksh. 9.9 billion (USD 76.59 million) worth of meat, Ksh. 5.6 billion (USD 43.33 million) worth of flowers and vegetables, and Ksh. 5.2 billion (USD 40.23 million) worth of fruits to the Gulf nation.
Bilateral non-oil trade between the two countries hit USD 3.1 billion in the first nine months of 2024, reflecting a 29.1% increase from the same period in 2023.
For Kenya, this agreement comes at a critical juncture as the country seeks strategic partnerships to boost infrastructure and economic growth.
The UAE’s diversification strategy, aimed at reducing reliance on fossil fuels, aligns well with Kenya’s ambition to modernize infrastructure and expand trade.
Under the CEPA, Kenyan businesses will gain duty-free and quota-free access to the UAE market, enhancing exports of agricultural products, manufactured goods, and services.
The agreement is also expected to attract foreign direct investment in sectors such as energy, agriculture, healthcare, logistics, and information technology.
Beyond trade, the CEPA includes a focus on sustainability. Both nations are committed to adopting clean technologies and environmentally friendly practices.
This aligns with Kenya’s emphasis on renewable energy and sustainable agriculture, areas where the two countries can collaborate for mutual benefit.
President Ruto has also announced plans to involve the UAE in extending Kenya’s Standard Gauge Railway to Uganda and South Sudan.
This collaboration could play a pivotal role in advancing Kenya’s Bottom-Up Economic Transformation Agenda (BETA).
The UAE’s CEPA with Kenya is part of its larger strategy to strengthen global trade partnerships. On the same day, the UAE signed agreements with Malaysia and New Zealand.
Each partnership targets specific goals, including investments in technology, logistics, and sustainable development.
For Kenya, the CEPA complements other trade agreements, such as the African Continental Free Trade Area (AfCFTA), the Kenya-EU Economic Partnership Agreement, and the Kenya-UK Economic Partnership Agreement.
These agreements collectively position Kenya as a key player in global trade, offering access to markets worth trillions of dollars.
“By boosting the export of Kenyan perishable goods like flowers, fruits, and vegetables to the UAE, it will likely open up more opportunities for Kenyan farmers and exporters,” said Sanjeev Gadhia, CEO of Astral Aviation.
He added that the CEPA would enhance the UAE’s access to fresh, high-quality products while fostering economic growth for both nations. Gadhia also highlighted plans to increase cargo capacity to meet rising demand.