Kenyan businesses are exploiting only a fraction of the export opportunities available in the European Union despite duty-free access to the market Kenya Association of Manufacturers has said.
The lobby says despite an increase in the number of exports to EU in the past two years when Economic Partnership Agreement took effect, it represents only about 10 per cent of the potential.
Kenya exported goods worth about Sh264 billion to the European Union, according to Tobias Alando, chief executive of the Kenya Association of Manufacturers (KAM).
Alando said the country could increase its share of the market by addressing information gaps that prevent local businesses from identifying European buyers, understanding product requirements and supplying goods that meet international standards.
“The European Union, has a population of about 449 million people across its 27-member states, and offers opportunities for Kenyan manufacturers, farmers and service providers seeking to expand beyond the domestic market,” said Alando.
"The major challenge that we've had with our people not accessing that market is information."
He was speaking during the launch of the Kenya-EU Export Catalogue 2026, which seeks to connect Kenyan producers with European importers by providing information on available products, potential markets and export requirements.
The catalogue comes as Kenya seeks to increase the benefits of the Economic Partnership Agreement with the EU, which provides Kenyan goods with duty-free, quota-free access to the European market, subject to the agreement's provisions.
Before the agreement took effect in July 2024, Kenyan goods faced import duties in the EU, making them more expensive compared with products from countries enjoying preferential market access.
Alando said removing tariffs gives Kenyan exporters an opportunity to compete on price, but businesses must take advantage of the arrangement by improving their understanding of overseas markets and their ability to meet demand.
The catalogue is aimed at guiding local producers and businesses on the best practices that will help them export more to the region.
“We should aim to capture 40 to 50 per cent of the estimated market opportunity. This would help create jobs across agricultural and manufacturing value chains,” said Alando.
Despite preferential access, Kenyan businesses face strict European requirements covering product quality, food safety, traceability and customs procedures.
For agricultural exports, buyers and regulators may require information on where products were grown, how farms were managed, the workers involved in production and how goods were handled and packaged before shipment.
Alando said exporters must understand these requirements before targeting particular countries or buyers.
"If I want to export leather bags to Italy, what are the Italian standard requirements? Then you comply with those requirements," he said.
The guideline seeks to ensure farmers and exporters dealing in fresh produce meet the relevant sanitary and traceability standards, with inspections helping determine whether products comply with market requirements.
Failure to meet these conditions can prevent businesses from accessing the market, even where tariff barriers have been removed.
The catalogue identifies a range of requirements for agricultural exports, including phytosanitary certification, good agricultural practices and traceability. It also highlights opportunities in processed foods, fruit products, nuts, textiles, leather goods and other manufactured products.
According to KAM the move seeks to broaden Kenya's export base beyond traditional agricultural products by highlighting opportunities for manufactured goods and services.
These include processed foods and beverages, textiles and apparel, leather and footwear, chemicals, pharmaceuticals, building materials, furniture and electrical products.
Kenyan businesses could also explore opportunities in information technology, telecommunications, engineering, financial services, education, healthcare, tourism and logistics.
Alando said the country needed to identify products it could supply competitively and connect producers with buyers in overseas markets.
Before the EPA took effect, Kenya exported goods worth $1.2 billion (Sh155.93 billion) to the EU in 2024 and imported goods worth $1.9 billion (Sh246.89 billion).
The figures point to a merchandise trade deficit of $700 million (Sh90.96 billion), a gap that KAM says exports could help narrow.
Representing Principal Secretary Dr. Korir Sing’Oei, Ministry of Foreign and Diaspora Affairs director Evans Maturu, said the Kenya–EU Economic Partnership Agreement is a key drivers of trade, regional integration and market access.
“The ministry is ready to support implementation—aligning our diplomatic missions with Kenya’s trade priorities, strengthening market intelligence and supporting businesses entering the European market,” he said.
Adding that trade attachés and representatives will identify opportunities, provide market insights and connect Kenyan enterprises with buyers and partners to translate the agreement into tangible trade opportunities.
