Kenya and the United Arab Emirates (UAE) have taken a bold step to strengthen their economic ties with the signing of the Comprehensive Economic Partnership Agreement (CEPA).

The landmark deal, officiated by President William Ruto and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi, is the first of its kind between the UAE and a mainland African nation, marking a pivotal moment in the two countries' bilateral relations.

"The signing of the historic Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) will deepen trade ties between the two nations by simplifying trade procedures, promoting industrialisation and stimulating investment," Ruto said.

With trade between Kenya and the UAE doubling in the last decade, the partnership comes at a strategic time.

In 2023, the total trade volume hit Sh445 billion, solidifying the UAE as Kenya’s second-largest import source and sixth-largest export destination, accounting for 16 per cent of Kenya’s total imports.

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Kenya’s major exports to the UAE include meat products valued at Sh9.9 billion, accounting for over half of the country’s total meat exports of Sh18.3 billion.

Other notable exports include fruits—primarily pineapples, avocados, and mangoes—valued at Sh5.2 billion, and vegetables and flowers, which collectively brought in Sh5.6 billion.

On the other hand, the UAE supplies Kenya with crucial goods, including petroleum, machinery, and chemicals.

The CEPA is designed to break down trade barriers, streamline customs processes, and promote industrialisation while fostering regional value chains.

It goes beyond traditional trade, covering areas such as digital commerce, technological innovation, and sustainability.

Kenyan service providers in sectors like transport, education, and construction are expected to gain enhanced access to UAE markets.

"This agreement aligns with our Bottom-Up Economic Transformation Agenda (BETA), providing new markets for our priority value chains, boosting foreign direct investment, and accelerating technology transfer," said a statement from the Kenyan delegation.

Sustainability also features prominently in the agreement.

Both nations committed to adopting clean technologies and environmentally responsible practices to ensure sustainable economic growth.

This emphasis on green practices resonates with Kenya’s broader trade strategy, which already includes agreements with the European Union, the United Kingdom, and frameworks such as the African Continental Free Trade Area (AfCFTA).

The CEPA is expected to catalyse further investment opportunities for the UAE in Kenya across sectors such as energy, water, agriculture, health, logistics, and ICT.

By reducing borrowing and focusing on foreign direct investment and public-private partnerships, Kenya aims to bolster its economic resilience and capacity for growth.

"The CEPA demonstrates Kenya’s readiness to take its place as a global trade partner, offering premium products and services while championing innovation and sustainability," the statement added.

The deal positions Kenya as Africa’s gateway to the world, providing duty-free and quota-free access to markets that account for nearly half of the world’s GDP.

It also highlights the UAE’s role as a crucial hub linking the Middle East, Asia, and beyond, solidifying its reputation as a global logistics and financial powerhouse.

This historic partnership is poised to unlock unprecedented opportunities, fostering deeper economic ties and contributing to the long-term prosperity of both nations.