In a momentous move set to reshape economic ties and penetrate the Gulf Cooperation Council (GCC) frontier, President Dr. William Ruto and UAE President Sheikh Mohamed bin Zayed Al Nahyan have signed the Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA). This historic pact, the first of its kind between the UAE and a mainland African nation, opens a new chapter of collaboration in trade, investment, and innovation.
Transforming Trade and Investment
The CEPA cements Kenya’s status as a gateway to East and Southern Africa while reinforcing the UAE’s role as a global logistics and financial hub bridging the Middle East, Asia, and beyond. Trade between the two nations has flourished, doubling over the past decade. In 2023, bilateral trade hit an impressive Ksh. 445 billion, with the UAE emerging as Kenya’s sixth-largest export destination and second-largest import source.
Kenya’s exports to the UAE showcase its agricultural strength, led by meat (Ksh. 9.9 billion), fruits such as avocados, pineapples, and mangoes (Ksh. 5.2 billion), and flowers and vegetables (Ksh. 5.6 billion). The UAE, in turn, supplies Kenya with essential imports, including petroleum, machinery, and chemicals, underscoring the symbiotic nature of their economic relationship.
Breaking Barriers and Creating Opportunities
The CEPA goes beyond reducing trade barriers and streamlining customs. It offers Kenyan businesses access to the UAE’s thriving services market, covering sectors like education, transport, construction, and engineering. This aligns perfectly with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), which seeks to unlock markets, attract foreign direct investment, and drive technology transfer for sustainable growth.
A Shared Vision for Sustainability
More than just a trade pact, the CEPA underscores a joint commitment to sustainability and green growth. The agreement promotes clean technologies and environmentally responsible practices, ensuring economic progress is paired with ecological stewardship.
Positioning Kenya as Africa’s Gateway
Building on Kenya’s robust trade framework, including deals with the EU, UK, US, and Africa’s Continental Free Trade Area, this agreement enhances Kenya’s access to global markets representing nearly half of the world’s GDP. It signals the nation’s readiness to embrace global trade with premium products and services while fostering innovation and sustainable development.
Unlocking Investment Potential
For the UAE, CEPA opens the door to investment opportunities across Kenya’s critical sectors, including energy, agriculture, health, ICT, and logistics. This strategic alignment supports Kenya’s policy of reducing debt while boosting foreign direct investment and public-private partnerships, driving economic transformation.
The Kenya-UAE CEPA is more than an agreement, it’s a catalyst for progress, signaling a bright future of collaboration, innovation, and shared prosperity between the two nations.