This archive report was first published on 24 August 2021.
Kenya is seeking to remove duties on its exports to South Korea, targeting coffee, tea, and spices, which currently attract an 8% duty. The move aims to increase the country's share of the Korean market.
According to Trade, Industrialization and Enterprise Development CS Betty Maina, the duty disadvantages Kenya's exports, which compete with Least Developed Countries (LDCs) that enjoy duty-free access. Ethiopia and Uganda are among countries enjoying duty-free access to the South Korean market as LDCs.
The countries have agreed to fast-track pending issues on market access of produce, including fresh avocados, into the South Korean market. A solution is expected before the end of the year.
Kenya's trade value with South Korea has increased significantly, from KSh8.47 billion in 2008 to KSh22.82 billion in 2020, a 169.42% rise. However, the balance of trade has favoured South Korea, standing at about Sh18.1 billion in 2020.
The government is keen to increase the export of agricultural products to South Korea, mainly fresh produces, by ensuring adherence to international standards.
Kenya's external trade value hit KSh1.4 trillion in H1 2021, a 24.3% increase from KSh1.094 trillion in H1 2020. The rise in external trade is attributed to a rebound in global and macroeconomic economic conditions as the world re-emerges from COVID-19 related disruptions.
