Kenya
Kenya is a beneficiary of the EU's Standard GSP. With a per capita income of $1,952 in 2023, the World Bank classifies Kenya as a lower middle-income country. In 2023, EU imports from Kenya amounted to a record €1.3 billion, of which almost half are eligible for GSP preferences. However, Kenya only uses GSP preferences for less than 2% of its eligible exports, as most of the trade goes through the Economic Partnership Agreement (EPA), which Kenya signed in September 2016. As the EPA provides the same or better preferences than the GSP, Kenya will leave the GSP on 1 January 2027.
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.
At a glance: EU preferential imports from Standard GSP beneficiary countries (2023, € million)
55.3M (2023)
Population
Presidential Republic
Government
5.6% (2023)
GDP Growth
7.7% (2023)
Inflation
$ 108.0B (2023)
GDP
Facts about Kenya's economy
Strong Economy
Kenya has one of the most vibrant economies in Africa, and is also one of the fastest growing economies in the region (with a GDP growth of 5.6% in 2023) which can be attributed to a stable macroeconomic environment and confident investors.
Export Products
Kenya's most important export articles are agricultural products like tea, cut flowers, coffee, and fruit and vegetables. Kenya also exports mineral fuels, palm oil, and apparel and clothing, as well as other light manufactures.
Trade Partners
China, the UAE and the EU were the three most important trading partners in 2023; together, they account for about 35% of Kenya's total trade. While the EU is the most important export destination (13.6% of Kenya's total exports go there), China is the largest source of imports. Looking at regional trading partners, neighbouring Uganda is the second most important export market, accounting for a share of 9.5%.
Economic Structure
While services contribute about 55% to Kenya's GDP (2023), agriculture remains an extremely important sector, contributing about 22% to GDP, employing about two-thirds of the population, and accounting for the largest share of export earnings. The manufacturing sector is comparatively small (8% of GDP) and focusses mainly on the processing of imports and agricultural products, as well as the paper and garment industries.
Usage of GSP Preferences
Kenya mostly uses other EU preferences granted in connection with the Economic Partnership Agreement. Therefore, the GSP preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is below 2%.
Trade with the EU
Total trade with the EU amounted to almost €2.4 billion in 2023. With a share of 9.6%, the EU was Kenya's third most important trading partner in 2023 and ranks first as a destination for Kenyan export products.
Kenya and the EU
Imports from Kenya by product section (2023, € million)
Imports from Kenya over time (€ million)
KENYA AND THE EU GSP
Economic Impact
39%
Share of Kenya's exports to the EU that were eligible for GSP preferences in 2023.
1%
Kenya's preference utilisation rate in 2023.
96%
Share of zero-duty imports from Kenya. Most imports are duty-free under the Market Access Regulation (and now, the EPA).
Preference utilisation and export diversification
EU imports from Kenya (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
EU imports of GSP preference eligible products increased slightly from 2017 to 2023 (after having contracted strongly in 2017 when cut flowers from Kenya graduated out of the GSP. As most of Kenya's exports to the EU made use of the preferences granted by the EU Market Access Regulation and the Economic Partnership Agreement, the GSP preference utilisation rate is low, remaining below 2% since 2016.
The largest product sections under the GSP (€ million, 2023)
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 Cooperation
DG INTPA
Access all info about EU-Kenya relations on the International Partnerships website.