Kenya Secures Duty-Free Access to Chinese Market via Trade Pact

Kenyan President William Ruto confirmed that negotiations with Beijing were completed this week, building on a preliminary January framework that offers duty-free access for 98% of Kenyan exports. “We have this week finalised negotiations,” he said, underscoring efforts to reduce a trade imbalance currently tilted toward China.

“We are strengthening our trade ties through the Framework Agreement on Economic Partnership for Shared Development,” Ruto said, adding the arrangement will provide “duty-free, quota-free status beginning May.”

Kenya’s push into the Chinese market aims to expand export volumes to one of the world’s largest economies. Bilateral trade has historically favored China, prompting Nairobi to prioritize access for agricultural and manufactured goods.

Ruto said foreign direct investment surpassed $2 billion in 2025, rising more than 15% year-on-year, while inflation and the currency remained stable.

Economic cooperation extends beyond trade. Kenya is advancing infrastructure projects under public-private partnerships, including the Standard Gauge Railway (SGR) extension from Narok to Kisumu and onward to Malaba.

The project is designed to link regional economies - Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo - to the Port of Mombasa. Ruto said the extension will “cut costs, save time, and improve safety” by shifting cargo from roads to rail.

The agreement is part of broader cooperation spanning digital innovation, intelligent transport systems, green energy, manufacturing, healthcare and education.

Kenya and China also signed four memoranda of understanding, including an early harvest arrangement on economic partnership.

“We are taking it further,” Ruto emphasized delivering “tangible benefits for our people” through expanded sectoral engagement.

Kenya continues parallel trade negotiations with Washington, highlighting its position as a key partner to both China and the United States. Ruto has defended engagement with Beijing, arguing export expansion is essential to closing structural deficits.

China’s wider footprint in Africa includes dozens of port projects and logistics hubs, with countries such as Kenya among those identified as having dual-use infrastructure potential, according to the Africa Center for Strategic Studies.