UK simplified trade rules open up opportunities for Kenyan exporters

President William Ruto and the Prime Minister of the UK Prime Minister Keir Starmer after signing the Kenya-UK Strategic Partnership pact at the10 Downing Street in London, on July 1, 2025. [PCS]

Kenyan exporters are set to benefit from trade reforms by the United Kingdom as the Keir Starmer led economy seeks to tap into the African Continental Free Trade Area (AfCTA).

A statement from the British High Commission states that the new package of UK trade reforms unveiled on July 10, is designed to simplify access to the UK market and strengthen economic ties with developing countries.

Upgrades in the Developing Countries Trading Scheme(DCTS) include simplified rules of origin, which will enable all developing countries, including those further up the value chain, such as Nigeria, to source inputs on finished goods from across the African continent, while ensuring that goods can continue to enter the UK tariff-free.

This is expected to support trade not just with the UK, but between African countries, helping to unlock the African Continental Free Trade Area's $3.4 trillion (Sh 442 trillion) potential.

Last year, over PS3.2 billion (Sh 563.9 billion) worth of goods imported into the UK from African countries benefitted from preferences granted by the UK's development trading arrangements.

UK Minister for Development Jenny Chapman said African countries no longer want a donor recipient kind of relationship.

"The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor," said Ms Chapman. She noted that these new rules will make it easier for developing countries to trade more closely with the UK.

"This is good for their economies and for UK consumers and businesses," she said.

UK Minister for Trade Policy Douglas Alexander pointed out that no country has ever lifted itself out of poverty without trading with its neighbours.

"Over recent decades trade has been an essential ingredient in lifting hundreds of millions of people out of poverty around the globe," he said.

These changes are coming at a time when a majority of African countries are in a tight spot on how to navigate the United States imposed trade tariffs where Kenyan exports to the US are levied at 10 per cent.

In addition to the DCTS changes, the UK will also help African exporters navigate customers issues and meet standards of the UK market.

This new scheme will also facilitate trade in services among them digital, financial and legal by strengthening future trade agreements.

"The updated rules are part of UK's Wider Trade for Development offer which aims to support economic growth in partner countries while helping UK businesses and consumers access high quality affordable goods," the statement adds.