Kenya is poised to sign a historic duty-free, quota-free (DFQF) trade agreement with China within the next 30 days, to lift the country’s export performance and restrategise its trade dynamics with the world’s second-largest economy.
Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui told local media that negotiations with Chinese counterparts have reached an advanced stage, with the foundational discussions already concluded.
Once finalised, the accord will allow Kenyan products to enter the Chinese market at zero tariff and without volume restrictions, giving exporters direct access to a market of more than 1.4 billion consumers.
“We have finished what you may call the initial discussions. So we would be expecting that in the next maybe 30 days, we should be able to sign, and our people can export directly to China at zero tariff and zero quota, meaning nobody restricts how much you’re able to export,” said CS Kinyanjui.
Agricultural producers are expected to be among the main beneficiaries because part of the DFQF underlines that products such as avocados, tea, coffee, flowers, and meat will potentially compete more favourably in China’s vast market.
This change could deliver a major boost to smallholder farmers and larger agro-exporters alike.
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“A couple of years back, when heads of state and governments went to big nations, the conversation revolved around support. But over time, the composition is changing to market access. What can I sell in your market? What can I produce in your country? That is more sustainable, more dignified for African countries,” he said.
The potential pact comes against a backdrop of evolving Kenya-China relations, which Kenya has been strengthening through high-level state visits, strategic cooperation agreements, and infrastructure and trade commitments.
Earlier preliminary arrangements reportedly granted near-zero tariffs on about 98.2 % of Kenyan exports to China under an “early harvest” framework.
For Kenya, which has historically contended with a large trade deficit with China,
It remains to be seen whether the agreement is actualised and the fruits of it could see mutual bilateral trade flows and help elevate the role of exports in national economic growth.
