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Kenya Shields Key State Firms in US Trade Deal

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 27 June 2020.

Kenya is gearing up to shield its key state-owned enterprises and economic sectors from the US Free Trade Agreement, as trade talks between the two nations are set to begin in July.

The country's Trade and Investment Working Group (TIWG) aims to counter the US bid to access government tenders, including those dealing with sensitive and security matters.

According to the country's negotiation objectives document, the Kenya-USA FTA will include negotiations based on World Trade Organisation trade remedies laws, such as subsidies and counter-vailing measures, anti-dumping, and safeguard.

Kenya has committed to gradually removing tariffs on US products, mainly agricultural goods and textiles, while ensuring no disruption of market access into the US after the African Growth and Opportunities Act (Agoa) expires on September 30, 2025.

The US seeks comprehensive market access for its agricultural goods in Kenya by reducing or eliminating tariffs and providing reasonable adjustment periods for US import-sensitive agricultural products.

Nairobi is also seeking a deal that works for all of Kenya and does not undermine regional integration efforts in Africa, while protecting existing EAC and continental trade protocols.

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