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What Kenya’s new trade deal with China really means for ordinary Kenyan

President William Ruto with Chinese President Xi Jinping during a state visit to China
The Government states that expanded export access has the potential to generate employment opportunities.
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The Government of Kenya has announced a preliminary trade engagement with China that will allow 98.2 per cent zero-duty market access for Kenyan goods.

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While the agreement is framed in trade and policy language, its relevance lies in how it connects to key areas of everyday economic activity.

Impact on farmers and agricultural producers

According to the Ministry of Investments, Trade and Industry, agriculture is expected to be among the key sectors linked to the expanded market access.

Agriculture remains a major source of livelihoods across the country, with many Kenyans engaged in farming either directly or through related value chains.

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The zero-duty access applies to goods originating from Kenya, creating an opportunity for agricultural produce to enter the Chinese market without tariffs.

The Ministry notes that this could support the diversification of Kenya’s export basket, particularly in agricultural products.

President William Ruto with Chinese President Xi Jinping during a state visit to China

Implications for the cost of goods

The announcement focuses on export market access rather than changes to import tariffs. As such, the agreement primarily addresses Kenya’s ability to sell goods abroad rather than the pricing of imported consumer products.

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The Ministry frames the engagement as part of broader efforts to reduce trade imbalances and strengthen trade partnerships, which form part of Kenya’s overall economic strategy.

Youth employment and economic participation

The Government states that expanded export access has the potential to generate employment opportunities.

Export-oriented sectors such as agriculture, logistics, processing, and trade-related services are among those linked to export activity.

Employment outcomes would be connected to how Kenyan exporters utilise the expanded market access and how production and supply chains respond to increased demand.

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Role of regional production areas

Kenya’s export sectors are distributed across different regions, particularly in agriculture. Production of export goods often takes place in counties outside major urban centres, linking rural and regional economies to international trade.

President William Ruto speaking to Kenyans in China

The Ministry indicates that the agreement aligns with efforts to strengthen Kenya’s trade capabilities and position the country more competitively within regional and global markets.

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