MARKET ACCESS

Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes.

Regional Markets
Kenya is a member of the East African Community (Kenya, Uganda and Tanzania) with a population of about 80 million. The country is also a member of the Common Market for Eastern and Southern Africa (COMESA) with a population of about 380 million. Exports and imports within member countries enjoy preferential tariff rates.

ACP/Cotonou Agreement
Exports from Kenya entering the European Union are entitled to duty reductions and freedom from all quota restrictions. Trade preferences include duty-free entry of all industrial products and a wide range of agricultural products including beef, fish, dairy products, cereals, fresh and processed fruits and vegetables.

African Growth and Opportunity Act (AGOA)
Kenya qualifies for duty free access to the United States of America (USA) market under the African Growth and Opportunity Act enacted by USA. Kenya’s major products that qualify for export under AGOA include textiles, apparels, handicrafts, etc.

Generalised System of Preferences (GSP)
Under the Generalised System of Preferences, a wide range of Kenya’s manufactured products are entitled to preferential duty treatment in the United States of America, Japan, Canada, New Zealand, Australia, Switzerland, Norway, Sweden, Finland, Austria, and other European countries. In addition, no quantitative restrictions are applicable to Kenyan exports on any of the 3,000-plus items currently eligible for GSP treatment.

Export Performance and Future Prospects
Kenya’s export base has continued to depend on food and beverages, followed by non-industrial food supplies. In the year 2000, food and beverages accounted for 56.27%, industrial non-food supplies 19%, while fuel and lubricants 8.5% of the total exports. The Government strategy is to enlarge and diversify the production of exportable non-traditional items such as manufactured goods, horticultural products and services.

Kenya has continued to export her products to traditional markets within the COMESA region (42.1%), and the European Union (EU) (30%). However, the bulk of her imports totalling Kshs 247.8 billion in the year 2000, were from EU (31%) and the Middle East (30%). The objective is to expand existing market shares and to diversify into new markets.