Kenyan businesses are tapping only about a tenth of the export opportunity available in the European Union, even though their goods have enjoyed duty-free, quota-free entry into the bloc for more than two years, the Kenya Association of Manufacturers (KAM) has said.

The association made the remarks during the launch of the 2026 Kenya-EU EPA Export Catalogue at the Nairobi Serena Hotel, a publication developed with the government and private sector partners to connect Kenyan manufacturers, farmers and exporters with buyers, distributors and investors in Europe.

A market of 449 million people

KAM Chief Executive Tobias Alando said Kenya's exports to the EU are worth about Sh264 billion, a figure he said represents only around 10 per cent of what the market could absorb. He noted that the 27-member bloc has roughly 449 million consumers.

"We should aim to capture 40 to 50 per cent of the estimated market opportunity," Alando said, arguing that such growth would create jobs along agricultural and manufacturing value chains.

He identified information as the biggest barrier. "The major challenge that we've had with our people not accessing that market is information," he said, pointing to difficulty in finding European buyers and understanding product rules. "If I want to export leather bags to Italy, what are the Italian standard requirements?"

Alando added that preferential access alone would not guarantee higher exports, citing manufacturing costs, unreliable infrastructure and low industrial productivity as factors that determine whether Kenyan firms can compete.

What the catalogue covers

The Economic Partnership Agreement (EPA) between Kenya and the EU took effect on July 1, 2024, removing the import duties Kenyan goods previously faced. However, European buyers and regulators increasingly demand details such as where produce was grown, how farms are managed and how goods are handled and packaged, and failing these checks can shut exporters out even without tariffs.

The catalogue sets out export-ready products and supplier contacts, and covers areas such as:

  • Phytosanitary certification and good agricultural practices
  • Traceability of produce from farm to buyer
  • Opportunities in processed foods, fruit products, nuts, fish, textiles, leather goods and building materials
  • Professional services and contacts for sector associations

Government and industry pledge support

Trade Secretary Michael Mandu said the government was committed to helping manufacturers benefit from the access provided under the agreement. KAM Board Chairman Hitesh Mediratta said manufacturers must stay competitive and meet international standards, arguing that Kenya could become a manufacturing and sourcing hub if firms supply high-quality, reliable products at competitive prices.

Speaking for Foreign Affairs PS Korir Sing'Oei, ministry director Evans Maturu said Kenya's diplomatic missions would be aligned with the country's trade priorities, with trade attachés expected to identify openings and link Kenyan firms with EU buyers.

Trade figures for 2024 show Kenya ran a deficit with the EU, exporting about $1.2 billion (Sh155.9 billion) worth of goods while importing about $1.9 billion (Sh246.9 billion).

Photos: Nairobi Business Monthly/KAM (Tobias Alando); Thijs ter Haar via Wikimedia Commons (CC BY 2.0). Thumbnail design: HAMASTA MEDIA.