Kenya–China Business Forum focuses on zero tariffs to strengthen trade ties

The Kenya–China Business Forum was held in capital Nairobi on Monday, focused on enhancing trade and investment ties between the two nations. 

Under the theme “Zero Tariffs for Stronger Cooperation, Greater Trade, Investment, and Thriving Industries,” the forum highlighted the Early Harvest Agreement that grants duty‑free access for selected Kenyan products to the Chinese market from May 1, 2026.

Chinese Vice President Han Zheng and Kenyan Deputy President Kithure Kindiki led a distinguished delegation of Chinese officials, senior Kenyan government representatives, and key business and industry leaders from both countries in attendance.

Han said China is looking to broaden economic and trade cooperation with Kenya, one of its largest trading partners in the region. Kindiki reflected on the long-standing diplomatic ties between the two countries, which have flourished since 1963.

"Our presence here today serves to demonstrate our collective policy and political support to your endeavors to increase the volume and value of trade in goods, services, and investment between our two countries," he said.

Kindiki underscored China’s significant role in the global economy, pointing to the vast consumer market.

"China is one of the world’s most dynamic economies, with a consumer base of over 1.4 billion people. For Kenya, this presents significant opportunities to expand exports, deepen industrial cooperation, and attract investment," he added.

Kindiki also discussed the trade relationship between the two nations, acknowledging the current disparity in trade volumes, with Kenya's exports to China standing at $0.21 billion in 2024, while imports from China were significantly higher at $4.32 billion.

"Our shared objective is to expand Kenya’s exports to the Chinese market, particularly value-added agricultural products, scale up the value chain, increase manufacturing cooperation and strive to move towards a more balanced trade between our two economies,” he noted.

Kindiki added that Kenya was keen on deepening its cooperation with China in other areas such as renewable energy, digital trade and other industrial value chains.

In an interview with CGTN Africa, Kenya’s Principal Secretary for Trade Regina Ombam discussed the Early Harvest Agreement and its role in facilitating trade. Ombam explained that the Early Harvest Agreement is an incremental way of getting into a free trade agreement.

"This process of getting into a comprehensive free trade agreement takes a long time, and so, the Early Harvest Agreement comes in as an incremental way of actually targeting those products that can be of value to a country."

She identified horticulture, tea, coffee, and cut flowers as key sectors set to benefit from zero tariffs. "Without that zero tariff, these sectors were being charged an import duty of between 10% to 25%. So, now it is going to zero, and that is a big plus in itself," she said.

Ombam also pointed to Kenya’s avocado industry, which earned $20 million in exports to China last year, as a sector poised for further growth under the new policy.

Later on Monday, the Deputy President Kindiki together with Vice President Han flagged-off the first consignment of exports to China set to benefit from the zero-tariff agreement at the Nairobi Railway Terminus. They are expected to reach China by May 1, when the zero-tariff policy takes effect.