State confident of new EU trade deal

State House has assured horticulture exporters of an extension on the yet to be signed trade agreement with the European Union (EU).

"East African Community (EAC) has requested the EU for a temporary extension while the matter is being addressed at regional level. We expect there will be a resolution that will take this matter forward," said State House Spokesperson Manoah Esipisu.

Talks to have Tanzania and Burundi sign the Economic Partnership Agreement with the EU had hit a dead end last Thursday at the East African Community Head of State Summit that was attended by Deputy President William Ruto.

The countries have already requested for a three months extension. Kenyan exporters were staring at huge monthly taxes of at least Sh600 million if regional leaders fail to agree on a deal before the October 1 deadline. Kenya is the only nation that stands to lose access to Europe because it is not grouped among the Least Developed Countries and does not, therefore, benefit from the unilateral Everything But Arms protocol.

"Only Kenya and Rwanda have signed. But we are looking forward to our other four neighbouring states to also sign," said Esipisu.

Tanzanian President Dr John Magufuli has been reluctant to sign the deal expressing fears for his country's undeveloped industries.

Burundi however, has a longstanding grudge with the EU for imposing sanctions during a previous political arrest.

However, Esipisu noted that Kenyan businesses were not effectively maximizing on the African Growth and Opportunity Act (AGOA) provided by the United States.

Esipisu further noted that despite Kenya being the leading country in the continent in exports through the AGOA platform, it was not maximizing on the numerous opportunities offered in the Act.

It is these gaps that the President Kenyatta plans to find solutions to when he visits United States for the 71st United Nation General Assembly meeting to be held in New York.

"Kenya can improve on its exports to the US under the programme," said Esipisu.