President William Ruto and the United Arab Emirates (UAE) President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, recently officiated the signing of the Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA), heralding a new era in economic relations between the two nations.
This agreement is the first of its kind between the UAE and a mainland African country, signaling a significant step toward bolstering trade, investment, and bilateral cooperation. CEPA aims to reduce trade barriers, streamline customs processes, and foster regional value chains to enhance industrialization.
The deal extends beyond the exchange of goods, encompassing services, digital trade, sustainability, and technological innovation. It presents immense opportunities for Kenyan service providers in education, transport, communications, construction, and engineering to access the UAE market.
Kenya’s Bottom-Up Economic Transformation Agenda (BETA) aligns with the objectives of CEPA, as it seeks to expand markets for priority value chains, attract foreign direct investment, and facilitate technology transfer. These efforts aim to boost livelihoods across the country, with ripple effects expected in sectors such as agriculture, manufacturing, and technology.
Trade volumes between Kenya and the UAE have grown significantly, surpassing Ksh 445 billion in 2023. The UAE has emerged as Kenya’s sixth-largest export destination and its second-largest source of imports, accounting for 16% of the country’s total imports.
President Ruto emphasized the strategic importance of this partnership, noting its potential to catalyze Kenya’s economic growth by unlocking new market opportunities. He highlighted that CEPA offers a pathway to greater economic resilience, improved global competitiveness, and enhanced integration into global value chains.
The UAE’s commitment to fostering deeper ties with Africa through CEPA could pave the way for other African nations to explore similar agreements, underscoring the continent’s increasing significance in global trade.
With this historic deal, Kenya and the UAE have laid a robust foundation for mutual growth and prosperity, setting a precedent for transformative economic partnerships in the region.
