Kenya, January 15 2026 - Kenya has clinched a preliminary trade agreement with China that grants duty-free access on approximately 98.2 % of Kenyan export goods, a significant move expected to unlock new export opportunities and strengthen bilateral trade ties.
The deal, reached after sustained negotiations between Nairobi and Beijing, comes amid broader efforts to balance Kenya’s trade relationship with China, which has historically been skewed toward imports. Kenya’s imports from China have far outpaced exports, driving concerns over a growing trade deficit.
Under the emerging agreement: Kenyan exporters will pay zero import tariffs on nearly all products entering the Chinese market, removing a major cost barrier and increasing competitiveness for Kenyan goods. The near-zero duty access is expected to boost agricultural exports, including tea, coffee, avocados, macadamia nuts and other produce, by opening up China’s vast market of 1.4 billion consumers.
Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said the duty-free access will “create new opportunities for Kenyan exporters and support diversification of our export basket, especially in agriculture, which remains the backbone of our economy.” Officials describe this as an “Early Harvest” framework, a precursor to a full bilateral trade agreement that Kenya has been negotiating with China to secure more equitable trade privileges.
Kenya has long sought to correct a widening trade gap with China. Latest government data show Kenya’s trade deficit with China reached roughly Sh475.6 billion in the first nine months of 2025, driven mainly by imports rising faster than exports. Kenya imports machinery, electronics, construction materials and industrial inputs from China, while its exports, mostly tea, coffee and other agricultural products, have historically been much smaller in volume.
By securing near-zero tariffs, Kenyan exporters could improve profit margins, explore new markets within China, and diversify beyond traditional export destinations like Europe and the U.S. China’s tariff stance has been evolving: As of January 1 2026, Beijing imposed additional 55 % tariffs on imported beef that exceeds set quotas for major suppliers like Brazil and Australia, part of protective measures to support its domestic cattle industry.
While beef tariffs largely affect major global producers, such policy shifts illustrate that access to Chinese markets can be shaped by strategic industrial priorities, making Kenya’s near-zero tariff agreement a noteworthy exception and opportunity. The new duty-free access to China also aligns with broader preferential policies Beijing has extended to Africa.
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In mid-2025, China announced zero-tariff access for many African goods as part of its diplomatic and trade outreach, although Kenya initially did not qualify because it is not a Least Developed Country (LDC). Kenya’s negotiation builds on that framework by securing comparable access through a bilateral arrangement.
Kenya’s ties with China date back decades, with diplomatic relations first established in 1963 and significantly expanded over the past two decades. China is today Kenya’s largest trading partner, with deep engagement in infrastructure, investment and commercial projects, including the Standard Gauge Railway (SGR) and major road networks.
Despite long-standing cooperation, critics have raised concerns about, trade imbalances, with imports far outweighing Kenyan exports, and Competition from Chinese manufactured goods that can undercut local industries. Nevertheless, successive Kenyan administrations have actively pursued trade diversification and negotiated market access arrangements as a way to strengthen export competitiveness.
The near-zero duty access is seen as an “early harvest” milestone: It is expected to spur new export growth, particularly in agriculture and value-added products. It provides incentives for investment in Kenyan export industries, potentially boosting jobs and incomes.
It may help reduce the bilateral trade imbalance by encouraging higher export volumes. Final operationalisation and specific product protocols, including sanitary and phytosanitary standards, remain in negotiation, with both sides committed to deeper cooperation. The deal’s success could reshape Kenya’s trade profile in Asia and mark a strategic shift toward diversified global market access for local producers.

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