Kenya taps only 10% of EU market, KAM says, as catalogue aims to close information gap
Kenya is tapping only about 10 per cent of the market opened up by its trade deal with the European Union because many exporters lack information on what European buyers require, the Kenya Association of Manufacturers (KAM) says.
Speaking to the press at the launch of the Kenya-EU EPA Export Catalogue 2026 in Nairobi on Wednesday, KAM Chief Executive Tobias Alando said exports to the EU have grown by about 20 per cent since the Economic Partnership Agreement (EPA) took effect, to about Sh264 billion, but remain a fraction of what is possible.
“The partnership agreement that was signed about two years ago has presented an opportunity for us to access a market of over 450 million people. And since then we’ve seen a slight growth of our export of about 20%. We were able to export about 264 billion Kenya shillings to the EU market. But that is just 10% of the opportunity that we have been able to access,” Mr Alando said.
He said the catalogue was developed with the EU, European partners and business membership organisations to close the gap. It sets out what Kenya produces and how it can reach European markets, and tells exporters what they must meet to enter them. For European importers, it shows what Kenya can supply.
“The major challenge that we’ve had with our people not accessing that market is information. So we have developed this catalogue in partnership with the European Union, European partners, business membership organisations, to give them information on the opportunities and the requirements to export to the European market,” he said.
Under the EPA, which entered into force on July 1, 2024, Kenyan goods enter the EU duty-free and quota-free. Mr Alando said this has changed the price at which Kenyan products reach European shelves.
“Remember before this agreement was signed, if you were to export to the European market, you were paying a duty. And that was a loss to the country in terms of competitiveness, because your goods land in the European market at a very expensive rate compared to other countries. So without paying duty means your goods land in the European market very cheap,” he said.
He cautioned that duty-free access does not mean easy access. He said the EU market is very strict on requirements, traceability and standards, and that there is no compromise on them. European buyers trace fresh produce from the farm, including who worked on it, how the farm was managed, and how the produce was packaged and exported, and inspectors visit the source. He said it is now up to Kenya to educate farmers and everyone who accesses the European market on these standards and traceability requirements so that they comply.
He added that the requirements differ by country and product. An exporter of leather bags to Italy, he said, must understand Italian standards, and one exporting green peas to the UK or Romania must learn those markets’ rules.
Mr Alando said responsibility for understanding each market’s requirements, including standards, traceability and customs rules, now lies mainly with business. He said the government’s role is to sign the trade agreements, while the private sector carries the major responsibility of understanding what each market specifically requires.
He said KAM wants Kenya to raise its share of the opportunity from the current 10 per cent to between 40 and 50 per cent. He said the remaining 90 per cent must be pursued intentionally, and that reaching it would create jobs along the value chain, including for young people.
Alando said Kenya has access under the African Growth and Opportunity Act (AGOA), but that goods now attract a duty, which he put at about 10 per cent. He said the duty-free access it once offered has changed because of a number of developments, but the duty is slightly lower than what others pay, so Kenyan goods remain competitive. He urged exporters not to wait for duty-free access, saying a price advantage of even 10 to 15 per cent is reason enough to enter the market.
On whether climate change threatens agriculture-based exports, Mr Alando said it is a global problem that also affects Europe, and that horticulture should remain Kenya’s main export. He said weather patterns may change but farmers can adopt different methods to keep producing, and that Europeans will still need to eat while their own climate limits the production of some crops.
He said Kenya has large arable land that is not fully used, and urged young people to take up farming for export, saying it would earn them dollars and euros.
