Investments in ports, ICT, and agriculture are central to the historic trade agreement between Kenya and the United Arab Emirates. Abu Dhabi is set to invest in critical sectors of Kenya, including ports, logistics, agriculture, and energy. President William Ruto stated that this historic agreement will triple Kenyan exports of meat-based products, fruits, vegetables, cut flowers, tea, and coffee to the United Arab Emirates. The agreement also targets the services sector, with Kenyan providers in education, transportation, construction, and engineering now set to have better access to opportunities in the UAE..

CEPA : Comprehensive Economic Partnership Agreement Kenya-UAE

Economic relations between Kenya and the United Arab Emirates are entering a new phase with the signing of an agreement for massive investments by the UAE in Kenya’s critical industries, including ports, logistics, agriculture, and energy.

The agreement, named the Comprehensive Economic Partnership Agreement Kenya-UAE (CEPA), aims to redefine trade exchanges, investments, and economic partnerships between the two countries. CEPA is part of the Gulf nation’s initiative to expand its foreign investment portfolio, a program that has led to similar agreements with Malaysia and New Zealand during the Abu Dhabi Sustainability Week.

Kenyan President William Ruto and his UAE counterpart, Sheikh Mohamed bin Zayed Al Nahyan, stated that CEPA represents the first agreement of its kind between the Gulf country and a continental African nation.

Win-win economic agreement

The signing of the historic Comprehensive Economic Partnership Agreement (CEPA) between Kenya and the United Arab Emirates will strengthen trade ties between the two nations by:

• Simplifying trade procedures
• Promoting industrialization
• Boosting investments

Once implemented, CEPA is expected to triple Kenyan exports of meat products, fruits, vegetables, cut flowers, tea, and coffee. This agreement will also offer the UAE investment opportunities in sectors such as energy, water, agriculture, health, airports, logistics, and ICT.

This aligns with the government’s policy to reduce debt while enhancing foreign direct investment and public-private partnerships.

Target sectors for investment and trade in Kenya-UAE relations

The trade agreement between Kenya and the United Arab Emirates marks a decisive step in deepening bilateral relations. It positions Kenya as a vital gateway to East and Southern Africa. This partnership reaffirms the UAE’s role as a global logistics and financial hub connecting the Middle East, Asia, Europe, and beyond.

Leveraging Kenya’s strategic location, the UAE aims to improve several economic sectors, notably Kenya’s port infrastructure and logistics capabilities. This fosters regional trade and connectivity as part of Abu Dhabi’s investments in the region’s critical sectors:

• UAE investments in Kenya’s technology and digital innovation sector are expected to modernize the country’s digital infrastructure while promoting efficiency and inclusivity.
• Agriculture, a key economic pillar of Kenya, should significantly benefit from improved trade exchanges and technology transfer, boosting productivity and exports.
• Other critical sectors targeted by the UAE include energy, water, health, airports, and human resource development, all contributing to Kenya’s long-term economic transformation.

Trade performance and opportunities between Kenya and the United Arab Emirates

Statistics show that trade exchanges between Kenya and the United Arab Emirates are experiencing remarkable growth. In 2023, Kenya’s Ministry of Foreign Trade reported that bilateral trade reached 445 billion KES (3.44 billion USD). Abu Dhabi ranks as the sixth-largest export destination for Nairobi and the second-largest source of imports, accounting for 16 % of East Africa’s total imports.

Kenya’s exports to the UAE are primarily agricultural products. During the period considered, Nairobi’s meat exports to the UAE generated 76.45 million USD, more than half of Kenya’s total meat exports.

Simultaneously, pineapples, avocados, mangoes, vegetables, and flowers collectively generated 83.4 million USD, according to ministry data. In return, the Gulf nation supplies Kenya with essential goods such as oil, machinery, and chemicals.

CEPA simplifies trade and strengthens value chains

The CEPA framework aims to :

• Eliminate persistent trade barriers
• Simplify customs procedures
• Promote industrialization and regional value chains

By removing trade barriers, Kenyan goods and services will have better access to the flourishing UAE market, while Gulf businesses will gain increased access to East Africa’s largest economy.

This historic agreement is also designed to promote digital trade and the transfer of cutting-edge technologies. Both countries commit to fostering environmentally friendly practices and clean technologies to ensure sustainable economic growth.

The ministry notes that CEPA further complements Kenya’s trade strategy, which includes agreements such as:

• Kenya-EU Economic Partnership Agreement (2024)
• Kenya-UK Economic Partnership Agreement (2018)
• African Continental Free Trade Area (AfCFTA)
• The African Growth and Opportunity Act (AGOA) with the United States

Collectively, these initiatives offer Kenya duty-free and quota-free access to global markets, representing nearly half of the world’s GDP.

Positioning Kenya as Africa’s trade gateway

Once implemented, Kenya’s strategic trade agreements, notably the Kenya-UAE CEPA, will strengthen its role as Africa’s gateway to the world. The country’s duty-free and quota-free access to major global markets enhances its ability to attract investments and stimulate economic growth. This latest agreement with the UAE further reinforces Kenya’s position as a trade and innovation hub in the region.

By fostering stronger bilateral relations and promoting sustainable development, CEPA sets a precedent for future partnerships, particularly between African nations and global economic powers. As global markets take note, the Kenya-UAE agreement signals a new era of economic cooperation, innovation, and shared prosperity.