Kenya-UAE CEPA eliminates tariffs, boosts agri-value chains and logistics

The Kenya-UAE CEPA signals long-term commitment to agricultural value chains, logistics infrastructure, and reduced trade barriers.

KENYA – Kenya and the UAE have signed the Comprehensive Economic Partnership Agreement, the first such deal between the UAE and an African nation, eliminating tariffs and boosting logistics cooperation.

Regina Ombam, Principal Secretary for Trade, has met with the Consul General at the Kenyan Embassy in Dubai, Jayne Toroitich, to emphasize the role of commercial diplomacy.

For fresh produce exporters and food logistics investors, the Kenya-UAE CEPA opens new corridors for tea, coffee, cut flowers, and emerging value-added agricultural products.

CEPA: Tariff Elimination and Market Access

The CEPA agreement, signed in early 2025, is the first such deal the UAE has finalized with an African country to deepen bilateral trade, economic cooperation, and investment.

The agreement includes the elimination of tariffs, provides market access for Kenyan service providers in sectors such as transport, construction, and logistics, and encourages foreign direct investment and public-private partnerships in agri-value chains with the UAE.

Kenya has emerged as a logistics and trade hub for East and Southern Africa, while the UAE is establishing its role as a regional logistics hub, building a bridge between Africa, Asia, and beyond.

For food businesses, this means reduced transit times and lower costs for perishable shipments moving from Nairobi to Dubai and onward to Asian markets.

Export Performance and Trade Deficit

According to data released by CEIC, Kenya’s total exports recorded US$753.8 million in January 2026, up from US$714.9 million the previous month.

Kenya’s export industry remains dominated by agricultural products such as tea, cut flowers, and coffee, with regional ties across East Africa and key global buyers in Asia and Europe.

French Partnership: Additional Investment Avenue

Earlier in March 2026, a collaboration between Business France East Africa and the French Chamber of Commerce in Kenya launched the ‘Doing Business in Kenya Guide 2026,’ aimed at providing French investors with detailed market insights.

France is currently the fifth largest provider of foreign direct investment in Kenya, supporting nearly 46,000 direct jobs, while bilateral trade between the two countries has surpassed US$300 million.

Outlook for Regional Food Investors

For Middle Eastern food investors, the Kenya-UAE CEPA signals long-term commitment to agricultural value chains, logistics infrastructure, and reduced trade barriers.

As Kenya pursues commercial diplomacy to reduce its trade deficit and expand its Gulf footprint, opportunities for joint ventures in cold storage, processing facilities, and direct sourcing partnerships are increasing.

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