Kenya has reached a preliminary trade agreement with China that will allow duty-free access for 98.2 percent of its export goods, the country’s Ministry of Trade said on Thursday, as both nations continue discussions toward a full bilateral trade deal.
The agreement, disclosed for the first time by the ministry, follows ongoing negotiations aimed at deepening economic cooperation between the East African nation and China. It comes after Kenya’s President William Ruto made a state visit to Beijing in 2025, during which several financing and cooperation agreements were signed.
“We have initiated discussions with China to negotiate a bilateral trade agreement,” the ministry said in a statement. “These engagements have resulted in a preliminary agreement.”
Duty-free access for Kenyan exports
Under the preliminary deal, nearly all Kenyan export products will qualify for duty-free treatment in the Chinese market. This covers a broad range of goods, from agricultural produce such as tea, coffee, and horticultural products to manufactured items.
The ministry noted that while the preliminary agreement is not yet legally binding, it lays the groundwork for a comprehensive trade framework that could significantly boost Kenyan exports and diversify the country’s trading partnerships.
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Officials said further talks will focus on tariff schedules, rules of origin, and mechanisms to ensure smooth trade flows. Both sides are also expected to address non-tariff barriers, regulatory alignment, and other trade facilitation measures.
Strengthening Kenya-China economic ties
Kenya has been cultivating closer economic relations with China over the past decade, with Chinese investment supporting infrastructure, transport, energy, and industrial projects. Major initiatives include financing for roads, railways, ports, and energy projects, many of which have enhanced Kenya’s logistics and export capacity.
The port of Mombasa, Kenya’s primary seaport and a key gateway for East African trade, has seen substantial Chinese investment, including in container terminals and equipment upgrades. Analysts say the preliminary trade deal could help Kenyan exporters leverage this infrastructure to increase access to the Chinese market.
Potential economic impact
Trade analysts suggest that duty-free access to China, Africa’s largest trading partner, could provide a significant boost to Kenya’s export revenue. Agricultural and horticultural sectors, which account for a substantial share of Kenya’s foreign earnings, are expected to benefit the most.
A duty-free arrangement could also incentivise diversification of exports, including processed and semi-processed goods, rather than relying solely on raw commodity shipments. This could create new value chains and jobs within Kenya’s industrial and manufacturing sectors.
However, experts caution that the final impact will depend on complementary policies, such as export financing, quality assurance, and compliance with Chinese regulatory standards. Kenya will also need to strengthen domestic capacity to meet rising demand and compete effectively with other African exporters.
Next steps
The Kenyan trade ministry said that negotiations will continue in the coming months toward a full bilateral trade agreement. Finalisation of the deal will require approval from both governments and may involve consultations with the private sector, industry associations, and other stakeholders.
“This preliminary agreement demonstrates the commitment of both countries to strengthen trade relations,” the ministry said. “We are confident that a full agreement will further enhance economic growth and bilateral cooperation.”
China remains one of Kenya’s largest trading partners, with imports from the Asian country dominated by machinery, electronics, and manufactured goods. Expanding access for Kenyan exports represents an effort to balance trade flows and promote sustainable economic partnerships.
The announcement comes as Kenya pursues a broader agenda of regional and global trade engagement, including participation in African Continental Free Trade Area (AfCFTA) initiatives, while seeking to increase competitiveness in global markets.
