State eyes more market for EPZ products through Agoa extension
Business
By
Peterson Githaiga
| Jun 26, 2024
Investment, Trade and Industry CS Rebecca Miano interacts with investors during the investors' forum at EPZ in Athi River. [Peterson Githaiga, Standard]
The government is pushing for the extension of the African Growth and Opportunity Act (Agoa) beyond 2025 to increase access to the US market for the products processed at the Export Processing Zones (EPZ).
Investment, Trade and Industry Cabinet Secretary Rebecca Miano says the US Congress has given a green light on the possibility of extending the framework by 16 years up to 2041.
"The EPZ firms will continue enjoying the quota-free duty-free market access to the US market. Further, the ongoing trade negotiations between Kenya and USA will also enhance US market access. This is through the ongoing conversation in the Strategic Trade and Investment Partnership," she said.
Speaking during an investors forum at the Athi River EPZ, Ms Miano also said Kenya's economic partnership agreement with the European Union will open opportunities for the enterprises to enjoy quota-free, duty-free market access to the European market.
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"There is also an ongoing conversation with the United Arab Emirates towards enhanced market access through the Kenya-UAE Comprehensive Economic Partnership Agreement.
"Other key markets that have shown interest in the Kenyan investment field include South Korea," she said.
Addressing more than 300 investors who congregated at the forum, Miano said the ministry is also keen in negotiating for full market access in the regional markets including the Africa Continental Free Trade Area, EAC, Comesa and the Tripartite Free Trade Area.
"With the expansion of the EAC regional block, my ministry is championing for the 20 per cent cap to be increased to at least 50 per cent for the local sales.
"This will enable the investors to sell more in the EAC market thus not only increasing their sales but also contributing significantly to Kenya's export basket."
EPZ Board Chairman Richard Cheruiyot warned investors who have leased land within the zones but have not constructed that they risk losing it.
He said in the last six months, 17 new enterprises joined the EPZ programme and four new private zones were gazetted in the same period, injecting a total investment capital valued at Sh13.8 billion.