EU pushes Kenya to diversify exports beyond agriculture

Ambassador of the EU in Kenya Henriette Geiger makes her remarks at Radisson Blu Hotel in Nairobi, July 9, 2026. [Edward Kiplimo, Standard]

Kenya's export basket remains heavily dominated by agricultural products, limiting the country's ability to maximise export earnings. The European Union (EU) is now urging Kenya to diversify its exports and invest in value addition to unlock greater trade opportunities and higher incomes.

EU Ambassador to Kenya Henriette Geiger has challenged the country to look beyond agricultural products and seek alternatives through the existing Economic Partnership Agreement (EPA) between the EU and Kenya.

Speaking during the launch of an implementation strategy for the Kenya-EU EPA, the envoy detailed the recent initiative by Equity Group that saw Kenya’s speciality tea, among them purple tea, find its way to France.

The deal sanctioned by French President Emmanuel Macron and his Kenyan counterpart William Ruto has seen smallholder farmers multiply their earnings.

Geiger said such innovation in exports is important in ensuring that Kenyan businesses maximise the EPA.

“This is showing us what is possible even with agricultural products. But we also say Kenya has to venture beyond agriculture in its exports,” she said.

She said stakeholders from both markets should research Kenyan products, other than agricultural, that could have the best chance to sell in the EU market.

“The current exports to the EU have a lot of legroom in terms of added value,” she said.

Geiger pointed out that of all the trade relations that Kenya has, the one with the EU is the most balanced.

“This is very important and we want to keep it that way,” she said.

Data from the Kenya National Bureau of Statistics (KNBS) shows that imports from the EU decreased by five per cent to Sh237.3 billion in 2025, largely due to lower import expenditure from the Netherlands (55 per cent) and Belgium (25.5 per cent).

“In particular, there was a significant decline in imports of motor spirit (gasoline) premium from the two sources,” says KNBS in the 2026 Economic Survey Report. “Nonetheless, there were growths in imports from Germany (20.7 per cent) and Poland (61 per cent), largely occasioned by increased imports of vacuum pumps and ferrous waste or scrap, respectively, in the review period.”

On the other hand, exports from Kenya to the European markets expanded in 2025, with total export earnings from this region increasing to Sh264 billion from Sh246.9 billion in 2024.

“The expansion was largely driven by increased domestic exports of fixed vegetable or microbial fats and oils to Italy, as well as higher shipments of coffee to Belgium and France. In addition, the rise in exports to Germany was occasioned by increased domestic exports of coffee and macadamia nuts,” the report says.

Principal Secretary State Department for Trade Regina Ombam said the duty-free, quota-free agreement with the EU has provided Kenya with an opportunity for investment, industrial growth, value addition and employment creation.

“However, market access alone does not automatically translate to increased trade. We must deliberately position our businesses to seize the opportunities created by the agreement,” said the PS who represented the Cabinet Secretary Lee Kinyajui in the event.

Ombam said there is a need, therefore, for coordinated actions by the government, private sector, development partners and other stakeholders.

“The Kenya -EU EPA Implementation Strategy, therefore, provides a clear roadmap for translating the commitment under the agreement into tangible economic outcomes,” she said.

She said the implementation strategy outlines the interventions required to enhance export competitiveness, strengthen production capacity, improve compliance with international standards, facilitate trade and promote investments with a keen focus on small enterprises.

“Trade remains a key driver of economic growth. We are, therefore, focused on creating an enabling environment that allows Kenyan entrepreneurs to compete successfully in regional and international markets,” said the PS.