THIRTEENTH PARLIAMENT

THE SENATE
GOOD PRACTICES RELATED TO MANAGEMENT OF TRADE ISSUES IN
KENYA PARLIAMENT

INRODUCTION

Kenya trade policy development can be traced back to the sessional paper NO:10 of 1965 of African socialism
and its application in Kenya. This paper centered on ensuring rapid economic development and social progress
for all Kenyans. Kenya undertook diplomatic measures necessary for the implementation of its external
economic policies. Kenya has existing links with United Kingdom, USA, west Germany as well as European
union and within Africa among others. Kenya Trade Regime is guided under World Trade Organization (WTO)
which it signed the Marrakech Agreement of April 1994 in morocco thus becoming founding member of WTO.
The Kenya vision 2030 blueprint policy is the first major attempt by the government of Kenya to define
longtime policy. The trade policy aims at transforming the country into a more open, competitive and export led
economy.

Kenya has ratified many trade agreements;

 Multilateral trade system; the world trade organization is the primary international organization
dealing with global rules of trade between nations. Kenya has been member of the WTO since its
inception in January 1995 and WTOs 10th ministerial conference was held in Nairobi in December 2015.
 African continental free trade area(AfCFTA); Kenya was among the 50 African nations that signed
the deal to create AfCFTA in Kigali Rwanda marking a historic milestone in the economic integration of
the continent which create a single market of the people.
 Regional markets; Kenya is a member of the East African community (EAC)and a member of
Common Market for East and SOUTHERN Africa(COMESA). Exports and imports within member
countries enjoy preferential tariffs rates. EAC member states have signed a protocol to establish a
common custom union.
 Cotonou partnership agreement; exports from Kenya entering the European union are entitled to duty
reduction and freedom from all quota restriction. trade preferences include duty-free entries of all
industrial products as well as a wide range of agricultural product like cereals and processed fruits.
 Bilateral Agreements; Kenya has signed bilateral agreement with many countries: Bangladesh,
Bulgaria, china, Lesotho, Tanzania, Somalia, Nigeria, Egypt, south Korea among others
 US-Kenya Agreement; in July 2020, united states and Kenya entered negotiation to seek a high
standard agreement that will also compliment regional integration effort within EAC and AfCFTA in
benefitting workers, consumers and supporting African regional economic intergration.the agreement
provide technical assistant and trade capacity building in Kenya with the aim of maximizing Kenyans
utilization of the AGOA trade benefits for the remaining years of the preference programs which expires
2025.

The current trade policy instrument is contained in various document and legislation and are administered by
various institutions. Some of the policy instruments include; import/export management, taxation, trade
facilitation and promotion, licensing and registration, labor laws impacting in trade, competition and consumer
protection and trade in services and governance. The key Acts that operationalized this policy instrument
include: local Government Acts and By-laws, Companies Act, Hotel and restaurant Licensing Act,
Consumer Protection Act and trade Description Act among others.
Kenya is amending some pieces of its legislation including on anti-dumping, countervailing and intellectual
property to bring conformity with the WTO Agreement. Kenya has recently rationalized its tariff structure into
ad valorem rates to enhance transparency of tariff regime. Most of Kenyan business activities are open to
foreigners and offer tax incentives to local and foreign investors in the form of tax holidays, accelerated
depreciation, investment allowances, lower duties on intermediate capital goods and reduction of cooperate tax.
Standard and technical regulation ensured the safety and quality product in the market. The government has
ensured that competent authorities to undertake standardization, testing and certification.
Custom valuation, classification and implementation procedures:, a number of reforms has been undertaken to
simplify custom administration which include automated online operation, reduction of road blocks, and
harmonization of documentation between EAC and COMESA.

A number of bodies and institution were created to ensure the expansion of Kenyan market and promote
economic integration and development:
 Ministry of trade, industry and cooperatives
 Department of external trade; WTO division, Bilateral division and Regional division
 The ministry of East African Community
 The ministry of industrialization
 The ministry of finance
 The ministry of foreign affairs
 The central bank of Kenya
 Kenya bureau of statistic
 Kenya revenue authority
 Kenya export promotion council
 Kenya export processing zones authority
 National committee on WTO
 Joint industrial and commercial consultative committee

Trade agreement has enhanced trade especially in food products. Kenya now exports most of food products
owing to the formation of world trade organization and East Africa trade agreement custom union. This
increases exporters GDP which increases trading partners. Kenya has been able to exploit synergies that would
experience through the joint and simultaneous implementation of WTO and regional trade agreement for easy
global trading.