The United Arab Emirates (UAE) and Kenya have signed a landmark Comprehensive Economic Partnership Agreement (CEPA), marking the UAE’s first bilateral trade pact with an African nation. This agreement underscores the UAE’s commitment to diversifying its economy beyond oil and enhancing global economic ties.
In the first nine months of 2024, non-oil trade between the two nations surged to $3.1 billion, a 29.1% increase from the same period in 2023. The CEPA is expected to further accelerate this growth by eliminating trade barriers, fostering greater collaboration in goods and services, and unlocking new opportunities for businesses in both countries.
Kenya, one of Africa’s fastest-growing economies, recorded a real GDP growth of 5.6% in 2023, with projections of a 5.2% average growth rate from 2024 to 2026. Key sectors such as services, which account for 53.6% of Kenya’s GDP, and agriculture, which contributes about 25%, present lucrative opportunities for UAE investors.
The agreement aims to attract investment in high-growth areas, including information and communications technology (ICT), banking, tourism, infrastructure, and renewable energy. This aligns with the UAE’s broader economic vision to double its GDP to over $800 billion by 2030, with foreign trade serving as a critical driver.
Kenyan businesses stand to benefit significantly from the UAE’s strategic position as a global trade and logistics hub, gaining enhanced market access and expanding their export capabilities.
This CEPA also reflects the UAE’s broader strategy to deepen economic ties with African nations, following similar agreements with Mauritius and the Republic of the Congo. The partnership solidifies the UAE’s role as a key investor and economic ally in Africa, opening a new chapter in UAE-Kenya relations.
