The Government of Kenya has initiated negotiations with China to establish a bilateral trade agreement aimed at reducing trade imbalances and expanding Kenya’s export basket globally.
In a public announcement on January 15 by Lee Kinyanjui, Cabinet Secretary, Ministry of Investments, Trade and Industry, the move follows China’s recent introduction of duty-free and quota-free (DFQF) market access for goods from Least Developed Countries (LDCs) in Africa.
However, Kenya, a developing country, does not benefit from this provision, leaving its exporters at a disadvantage.
“We note that recently, the Chinese government announced a duty-free and quota-free (DFQF) market access for all goods originating from Africa. However, this provision primarily benefits only the Least Developed Countries (LDCs) within Africa, leaving developing countries like Kenya at a disadvantage.”
Boost for Kenyan Exporters
To address this, Kenya is seeking an agreement that is on par with the privileges enjoyed by East African Community (EAC) member states and other African nations.
According to the Ministry of Investments, Trade and Industry, preliminary engagements have yielded a framework granting 98.2 percent zero-duty market access for Kenyan goods.
“To mitigate this, we have initiated discussions with China to negotiate a bilateral trade agreement that aligns with the privileges enjoyed by our East African Community neighbours and other African nations. We are pleased to share that these engagements have resulted in a preliminary agreement that allows for 98.2% zero-duty market access for Kenyan goods. This early harvest framework is a monumental progression that signifies China’s commitment to strengthening our trade ties further.”
CS Lee Kinyanjui added that the introduction of zero-duty access is expected to deliver substantial economic benefits with agriculture, the backbone of Kenya’s economy, standing to gain the most.
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He further pointed out that the agreement would not only diversify Kenya’s export basket but also increase job creation through expanded production and processing activities.
“This development is expected to generate considerable employment opportunities and bring tangible benefits to our economy. In conclusion, the Government of Kenya remains committed to pursuing opportunities that enhance our trade capabilities and strengthen our partnerships on the world stage. We look forward to the positive impacts of this agreement on our economy and the wellbeing of our citizens.”
Current Kenya-China Trade Landscape and Challenges
China’s zero‑tariff (DFQF) treatment—long applied to Least Developed Countries (LDCs)—was expanded from 98% to 100% of tariff lines for eligible LDCs effective December 1, 2024, as notified to the WTO in 2025.
Kenya, classified as a developing country, is not covered by this unilateral LDC scheme, which is why the government is negotiating a similar bilateral framework.
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The LDC zero‑tariff pathway began expanding in stages from 2022 and by December 2024, before the 2025 notification of full (100%) LDC coverage.
Kenya’s trade with China remains heavily imbalanced.
According to UN COMTRADE, Kenya’s goods imports from China totalled $4.31 billion (Ksh555.559 billion) in 2024, led by electrical and electronic equipment, machinery, plastics, vehicles and iron/steel.
KNBS data cited in January 2026 reporting show Kenya’s trade deficit with China reached Ksh475.6 billion in the first nine months of 2025, up 16.7% year‑on‑year, as imports from China rose to Ksh489billion and exports fell to Ksh13.4 billion.
Monthly KNBS indicators through 2025 consistently rank China as Kenya’s top import source, ahead of the UAE and India.
Kenyan exporters, however, face phytosanitary and quality‑assurance compliance costs, limited direct logistics, and freight volatility, which have raised delivery prices and eroded margins.
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