Kenya signs post-Brexit trade pact with UK to avoid disruption

Kenya signed an agreement with the U.K. to ensure continued preferential trade terms with its biggest European partner after Brexit, Trade Secretary Betty Maina said.

Kenya, the biggest economy in the East African Community, broke ranks with other members in forging the bilateral deal because it is designated as a developing economy and would not be eligible for the preferential access granted to least-developed countries, Maina said in emailed statement on Thursday.

Kenyan exports, including tea, flowers, fruit and vegetables will continue to have duty- and quota-free access after the U.K. leaves the European Union, Maina said.

The U.K. accounted for almost one-third, or 40 billion shillings ($359 million), of the East African nation’s 133 billion shillings worth of exports to the EU last year, according data from the trade department.

Kenya, the world’s biggest producer of black tea, exported $150 million worth of leaves to the U.K. in 2019, while shipments of flowers amounted to $105 million, Maina said. It imported 35 billion shillings of goods from the U.K. or about 15% of total purchases from the EU. Items included machinery, autos, pharmaceuticals, and electrical and electronic equipment.

The so-called U.K.-Kenya Economic Partnership Agreement comes into effect on Jan. 1 and will be reviewed every five years.