Kenya and the European Union formalized a long-negotiated trade agreement on Monday, aiming to boost the exchange of goods between the two markets. The Economic Partnership Agreement grants Kenya duty-free and quota-free access to the EU, its largest export market, while European goods will see gradual tariff reductions.

This marks the EU’s first comprehensive trade deal with an African nation since 2016, amid China’s substantial investments in infrastructure projects across the continent. Kenyan President William Ruto emphasized the historic nature of the partnership, emphasizing its potential to benefit ordinary citizens.

European Commission chief Ursula von der Leyen, present at the Nairobi ceremony, described the pact as a “win-win situation” and urged other East African nations to join. The deal, concluded in June after years of negotiations, requires ratification by both Kenyan and European parliaments before taking effect.

The EU highlighted this agreement as its “most ambitious economic partnership” with a developing country. It includes commitments to sustainable development, encompassing areas like labor rights and environmental protection.

Trade Commissioner Valdis Dombrovskis termed the agreement historic, foreseeing new opportunities for cooperation. The EU, representing over 20% of Kenya’s exports, particularly in agricultural products, seeks to deepen economic ties and enhance mutual resilience.

Total trade between Kenya and the EU reached 3.3 billion euros ($3.6 billion) in 2022, reflecting a 27% increase since 2018. The EU’s efforts align with its strategy to counter China’s Belt and Road initiative, with increased investments in Kenya through the Global Gateway initiative announced in February.

Amid renewed diplomatic competition, Kenya emerges as a sought-after partner, showcasing stability and reliability in a turbulent region. Notably, the EU’s engagement contrasts with China’s role in Kenya’s major infrastructure projects, such as the $5 billion Chinese-built railway connecting Nairobi to Mombasa.

In addition to the EU agreement, Kenya is concurrently negotiating a trade deal with the United States. This trade deal with Europe follows a decade of talks between the EU and the East African Community (EAC), offering an open invitation for other EAC partners to join and collectively benefit from the agreement.