Kenya reaches preliminary trade deal with China granting 98% of exports duty-free access 

KENYA – Kenya has reached a preliminary trade agreement with China that would grant 98% of Kenyan exports duty-free access to the Chinese market, the government has confirmed, as the two countries work toward a comprehensive bilateral trade deal. 

In a statement disclosing the talks for the first time, Kenya’s trade ministry said: “We have initiated discussion with China to negotiate a bilateral trade agreement. These engagements have resulted in a preliminary agreement.”  

The arrangement, concluded last month after negotiations held quietly, is technically referred to as an Early Harvest Arrangement. 

The agreement follows Beijing’s broader move to eliminate trade tariffs on imports from the 53 African countries with which it has diplomatic relations. The initiative was announced last June, amid global trade tensions triggered by sweeping tariff measures introduced by U.S. President Donald Trump. 

“In order for this announcement to be WTO-compliant, middle-income countries like Kenya have to undertake bilateral trade agreements with China,” said Hannah Ryder, founder of Development Reimagined, an Africa-focused consultancy.  

She added that while the deals would eventually become reciprocal, African countries would be given time to strengthen their economies before facing full competition with Chinese industries. 

Kenya, East Africa’s largest economy, recorded a trade deficit with China of Kes 549.82 billion (US$4.27 billion), in 2024. The country exported goods worth Kes 26.32 billion (S$204 million) to China, while imports from Beijing stood at Kes 576.14 billion (US$4.47 billion). 

“The introduction of zero-duty access will unlock vast economic potential for Kenyan exporters,” the trade ministry said, noting that businesses would be able to ship increased volumes of agricultural produce, although specific products were not named. 

Previous efforts to narrow the trade imbalance, including allowing fresh Kenyan avocados into China in 2022, have so far failed to significantly reduce the gap. 

Kenya is also negotiating a separate bilateral trade agreement with the United States and is seeking the reauthorization of the African Growth and Opportunity Act (AGOA). 

Addressing concerns that closer engagement with China could strain relations with Washington, Korir Sing’oei, principal secretary at Kenya’s Foreign Ministry, said: “We see no tension between our concluding a market access arrangement with China on one hand, and our robust push for AGOA re-authorization as well as a separate bilateral trade agreement with the United States, on the other.” 

President William Ruto has defended Kenya’s deepening ties with China, stating that the country must expand exports to the Asian giant to reduce its trade deficit.  

China is also Kenya’s largest bilateral creditor, with both sides agreeing to denominate portions of existing loans in Chinese yuan instead of U.S. dollars to lower interest costs. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.