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Kenya eyes EU market as FTA opens new trade avenues

23 Sep '24
2 min read
Kenya eyes EU market as FTA opens new trade avenues
Kenya eyes EU market as FTA opens new trade avenues

Insights

  • The FTA between the EU and Kenya, effective from July 1, 2024, is expected to open opportunities for Kenya's cotton, textile, and apparel industry, which currently relies heavily on North American markets.
  • Despite challenges, the industry is growing due to affordable labour.
  • Kenya's presence in the EU market remains small, but the FTA may boost exports, particularly in apparel and home textiles.

The FTA, known as the Economic Partnership Agreement between the EU and Kenya, was signed on September ** last year. Kenya is actively promoting its cotton, textile, and apparel industry across its manufacturing sector. Being labour-intensive, the industry employs both semi-skilled and unskilled workers, making it a key contributor to rural livelihoods.

According to Fibre2Fashion’s market insight tool TexPro, Kenya exported apparel worth $***.*** million between January and June ****. However, the country remained heavily dependent on North America, with $***.*** million of exports, accounting for **.** per cent of the total. The United States and Canada are the major destinations. In contrast, Kenya’s apparel exports to Europe (including the EU and other European nations) were recorded at $*.*** million, a mere *.** per cent of its total apparel exports during the same period.

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