Kenya to gain duty free access to Chinese market amid US trade barriers

Kenya is set to benefit from significant trade opportunities with China after the Asian nation agreed to negotiations allowing Kenyan goods to enter its market without tariffs.

The development comes as U.S. imposed trade barriers continue to affect local exports.

Trade Cabinet Secretary Lee Kinyanjui announced on Thursday that, following recent bilateral trade talks with China, Kenya will now be able to export 98.2 per cent of its products duty-free. This means the goods will not incur import taxes or tariffs, which normally increase costs and limit competitiveness.

China’s existing duty-free and quota-free policies primarily favor Least Developed Countries, leaving developing nations like Kenya initially excluded. To address this, Kenya initiated negotiations to secure a comparable trade arrangement.

The early harvest framework is expected to diversify Kenya’s export basket, with a particular focus on agricultural products, which form the backbone of the country’s economy.

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“We are pleased to share that these engagements have resulted in a preliminary agreement allowing for 98.2 per cent zero-duty market access for Kenyan goods. This move will unlock vast economic potential for Kenyan exporters, enabling diversification of our export basket, especially in agriculture, which is the mainstay of our economy,” Kinyanjui said.

The CS added that zero duty access could boost profits for exporters, expand market reach, and create employment opportunities across multiple sectors.

The announcement comes amid U.S. trade barriers, including a 10 per cent baseline tariff on Kenyan exports, which have prompted businesses to seek alternative markets. China’s agreement positions it as a key destination for Kenyan products, offering lower costs and more predictable trade terms.

In a related development, the U.S. House of Representatives recently passed a Bill extending the African Growth and Opportunity Act (AGOA) for another three years, providing renewed certainty for Kenya’s key export sectors and reinforcing U.S.Africa trade ties.

By Obegi Malack

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