Kenya and the United Arab Emirates (UAE) have taken a significant step towards strengthening their trade ties with the signing of the Comprehensive Economic Partnership Agreement (CEPA) on Tuesday, 14th of January, 2025. The agreement, which has been in the works since 2022, aims to boost trade and economic cooperation between the two nations.

The CEPA is intended to make the UAE a key trade partner, ensuring that Kenya has another prime-time export market. According to a statement from State House, the agreement solidifies Kenya's standing as a gateway to East and Southern Africa and underlines the UAE's position as a major financial and logistical center linking the Middle East, Asia, and beyond.

In 2023, imports from the Middle-Eastern country allowed the UAE to become Kenya's second-largest import source after China. Data from Kenya's National Bureau of Statistics (KNBS) 2024 economic assessment indicated that imports worth Sh411.5 billion in 2023 allowed the UAE to surpass India in becoming Kenya's second-largest import source after China.

Kenya primarily exports tea, beef, animal products, fruits, vegetables, and flowers to the United Arab Emirates, while the UAE's top exports to Kenya include petroleum oil, iron and steel, plastic and copper products, equipment, chemicals, and various home products. Out of the Sh106.6 billion in exports to the Middle East, Sh55.9 billion went to the Emirates.

Prime CS Musalia Mudavadi stated that the CEPA intends to strengthen trade, investment, and economic cooperation between the two countries. "Through the gradual removal of tariff and non-tariff barriers on most traded goods, it paves the way for a robust free trade area between the two countries," Mudavadi said in Abu Dhabi.

The signing of the CEPA was presided over by President William Ruto of Kenya and Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. The agreement marks a significant milestone in the strengthening of trade ties between the two nations, with implications for the broader East African region.

The deal is expected to have a positive impact on Kenya's economy, providing a new export market and increasing trade volumes. The agreement also underscores the UAE's growing influence as a major financial and logistical center in the region.

As Kenya continues to strengthen its trade ties with other nations, the CEPA with the UAE is a significant step towards increasing its economic cooperation with other countries. The agreement is expected to have a positive impact on the region, promoting economic growth and development.

In the context of Kenya's growing economy, the CEPA with the UAE is a significant development, highlighting the country's strategic position as a gateway to East and Southern Africa. As the agreement comes into effect, it will be important to monitor its impact on trade volumes, economic growth, and the broader region.