Kenyan exporters to access China duty-free after deal

President William Ruto speaking during the Presidential Private Sector Roundtable at Ole Sereni, on August 6, 2025. [PCS]

Kenyan exporters of agricultural produce will now access the Chinese market duty-free after the two countries concluded bilateral trade talks initiated in April during President William Ruto's State visit to Beijing.

Seen as a charm offensive move to the newly imposed 10 per cent US tariff on Kenyan exports, President Ruto said yesterday the deal would balance trade between the two markets.

Addressing a private sector round table, the President claimed that Kenya has been under pressure to reduce its engagement with China.

"It is partly why I have a bit of a problem with some of our friends, but it is what I must do for Kenya. It is in the best interest of Kenya," he said.

"Some of our friends are complaining that we are doing too much trade with China. When I sat with President Xi, I told him Kenya imports Sh600 billion of products from China, yet we only export five per cent."

He, however, pointed out that, in light of the new global trade order, Kenya would do what is in its best interest.

"We have concluded the high-level conversation with China. They have agreed to a reciprocal arrangement to remove all the tariffs on our tea. coffee, avocado and other agricultural exports," he said, adding that what remains is finalising the bilateral instruments before the deal comes into effect "in a few months."

He said Kenya is also negotiating a similar deal with India.

"We haven't quite had a breakthrough. We are in a good place with Turkey and Canada," said Ruto.

He said the new order of global trade now demands that, as every country pushes for what is in its best interest, so must Kenya.

"It is up to us as Kenyans to find tools on how to negotiate our way into the different markets," he added, alluding to Kenya's Economic Partnership Agreement (EPA) with the European Union that came into effect mid last year and the Comprehensive Economic Partnership Agreement (Cepa) with the United Arab Emirates signed in January 2025.

Investments, Trade and Industry Cabinet Secretary Lee Kinyajui said China is a 1.4 billion market, providing a huge opportunity for Kenya.

He said Kenya, compared to its neighbours, is disadvantaged due to its lower-middle income status.

"Because Kenya is a middle-level income country, some of our exporters to China have to pay 10 per cent duty, while our neighbouring countries pay zero," said the CS.

"We have importers who take their products to Rwanda, then export them to China as Rwandan products. Now, with the removal of that, they can export directly to China."

Kenya Private Sector Alliance (Kepsa) Vice Chairman Jas Bedi pointed out the recent changes in global trade spearheaded by the US, noting increased protectionism and transactional trade agreements.

He further raised fears over the pending expiry of the African Growth and Opportunity Act (Agoa), which allows duty-free export of goods to the US from African countries.