Kenya

Kenya is a beneficiary of the EU's Standard GSP. The World Bank classifies Kenya as a lower middle-income country with a per capita income of $2.170 (2022). In 2022, the EU imports from Kenya summed up to €1,2 billion, of which almost half are eligible for GSP-reduced tariffs. Kenya currently only uses GSP preferences for less than 2% of its exports to the EU as most of the trade goes through the Economic Partnership Agreement, which Kenya signed in September 2016.

What is the GSP?

The Standard GSP targets developing countries that are classified by the World Bank as lower or lower-middle income countries and which do not have equal preferential access to the EU market through any other arrangement. Standard GSP beneficiary countries can benefit from duty suspension for non-sensitive products as well as duty reductions for sensitive products across approximately 66% of all EU tariff lines.

Kenya flag

At a glance: GSP beneficiaries' preferential imports to the EU

group

54,03 M

Population

account_balance
Presidential Republic

Government

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4.80%

GDP Growth

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6.60%

Inflation

money

$ 113,42 B

GDP

52 ^

Freedomhouse index

4 -

ITUC Global Rights Index

30.8 ^

Environmental Performance Index

Facts about Kenya's economy

Strong Economy

The Kenyan economy is one of the strongest economies on the African continent. In addition, with an average GDP growth of 5.6% (2019, pre-COVID) Kenya is also one of the fastest growing economies in the region which can be attributed to a stable macroeconomic environment and confident investors.

Export Products

Kenya's most dominant export articles are agricultural products like roses, black fermented tea, coffee, avocados, beans, and macadamia nuts. Kenya also exports titanium ores and apparel and clothing.

Trade Partners

China and the EU together account for almost 27% of Kenya's total trade. While the EU is the most important export destination, China is the largest source of imports. Looking at regional trading partners, neighbouring Uganda is the second most important export market, and it accounts for a share of 12.4%.

Economic Structure

While services contribute about 55% to Kenya's GDP, agriculture remains an extremely important sector which makes up about 21% of the GDP. The agricultural sector employs about two-thirds of the population and accounts for the largest share of export earnings. The manufacturing sector focusses mainly on the processing of imports and agricultural products, as well as the paper and garment industries.

Usage of GSP Preferences

The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at below 2%.

Trade with the EU

Total trade with the EU summed up to € 3,288 million in 2022. With a share of 11,7%, the EU is Kenya's second most important trading partner and ranks first as a destination for Kenyan export products.

Kenya and the EU (2022)

Imports from Kenya by product section

Imports from Kenya over time (in € m)

KENYA AND THE EU’s GSP

Economic Impact

37%

About 37% of Kenya's exports to the European market are eligible for GSP preferences.

2%

With a preference utilisation rate of only 1.6%, Kenya currently does not make much use of GSP preferences

Preference utilisation and export diversification

Kenya's imports to the EU

Preference Utilisation vs. total eligible imports

Overall, Kenya’s preference utilisation rate remains low, ranging below 2% since 2016. Kenya simultaneously benefits from the preferential tariffs granted by the EU’s Market Access Regulation for African countries through which most of its exports to the European market go. Since 2014, the country is a beneficiary of the general GSP.

The largest product sections under the GSP

Due to Kenya’s participation in the EU’s Market Access Regulation for African countries, imports under the GSP remain minuscule. The bulk of overall EU imports from Kenya is accounted for by live plants and floricultural products. This product section, however, graduated from the GSP on 1 January 2020 due to its high level of competitiveness on the world market.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the Standard GSP, Kenya's preferential market access is not bound to the ratification of international conventions. Kenya has ratified 13 out of 15 international core conventions on human rights and labour standards. In addition, Kenya has ratified 8 conventions on environmental protection and 4 conventions on good governance.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Kenya Bilateral Development Assistance

DG INTPA

Access all info about EU-Kenya relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/kenya_en

Opportunities in Kenya

  • Young and highly skilled workforce
  • Dynamic and diversified private sector
  • Stable political environment and an important partner in the region
  • Kenya has a strategic location and is a regional trade hub with its port in Mombasa
  • Large local market with increasing domestic demand
  • Kenya has one of the most diversified consumer goods industries among all countries in Sub-Saharan Africa

Contact points