EU's chamber of commerce to up trade relations with Kenya

The European Union (EU) has launched the European Chamber of Commerce in Kenya (EuroCham Kenya) aimed at enhancing economic ties and private sector collaboration

The launch took place on Monday in Nairobi during the second EU-Kenya business forum, held under the theme “Digitalising Trade.”

It was attended by top diplomats, business leaders, and policymakers from both the EU and Kenya.

EuroCham Kenya is designed as a platform to amplify the European private sector’s engagement in Kenya, facilitating joint advocacy, promoting investment, and supporting the implementation of the EU-Kenya Economic Partnership Agreement (EPA), which officially came into force on July 1, 2024.

The agreement grants duty and quota-free access for Kenyan goods to the EU market and aims to boost trade and sustainable growth.

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Speaking at the event, EU Ambassador to Kenya Henriette Geiger emphasised the significance of EuroCham Kenya.

“With the EPA now operational, it became necessary to create a structure that could advocate at the European level, beyond bilateral chambers like those of Germany or France,” she said. “This chamber will not replace national ones but will complement them by focusing on broader EU interests and implementation of the EPA.”

Foreign Direct Investment

The EU remains Kenya’s largest export destination, accounting for over 40 per cent of its exports, and is responsible for more than 20 per cent of Kenya’s total Foreign Direct Investment (FDI). The business forum provided a vital opportunity to further unlock this potential by addressing trade barriers and fostering innovation.

The event also saw the announcement of a €100 million (Sh12.96 billion) financing partnership between the European Investment Bank (EIB) and Family Bank of Kenya, aimed at supporting Kenyan small and mid-sized companies, especially in trade and agriculture.

EIB Vice President Thomas Östros highlighted the importance of investing in Kenya’s digital and physical infrastructure. “We are mobilising capital to empower Kenyan entrepreneurs, focusing on youth, women, and digital transformation,” Östros stated.

EU Trade Commissioner Maroš Šefčovič lauded the deepening EU-Kenya relationship, calling the EPA “a beacon for African-European economic partnerships.”

He noted that trade between the two has already grown by 13 per cent, with investments increasing by over 50 per cent since the agreement’s signing. Šefčovič also emphasised the EU’s long-term commitment to Kenya, including its push to digitise trade systems and support infrastructure like the port access road and geothermal energy development.

Kenya’s Trade Cabinet Secretary Lee Kinyanjui lauded the transformative impact of the EU-Kenya EPA, noting that exports to the EU have diversified beyond traditional commodities like tea and flowers into more value-added products. “The EPA has opened new doors for industrial exports and development of a resilient economy,” he noted.

President William Ruto underscored Kenya’s ambition to become a regional and global digital trade hub. With an expanding fibre optic network, over 20,000 digitised government services, and tax reforms supporting digital assets, Ruto affirmed. “Technology is not just an enabler; it is the driver of our trade ambitions.”

The newly launched EuroCham Kenya is poised to serve as a strategic platform for enhancing the effectiveness of the EU-Kenya Economic Partnership Agreements.

One of its primary roles will be to coordinate private sector input on the implementation of the EPA.

By bringing together various European business interests under one umbrella, EuroCham Kenya will ensure that businesses have a unified voice in shaping policies and providing feedback on regulatory and trade issues that arise under the agreement.