Kenya-China Trade Deal Opens Duty Free Access For 98.2%

Thursday 15th January 2026

By inAfrika Newsroom

Kenya China trade deal talks moved forward on Thursday after Kenya’s trade ministry said the two countries reached a preliminary agreement that grants duty free access to 98.2% of Kenyan export goods into China.

The ministry framed the step as a turning point in negotiations toward a wider bilateral trade arrangement. Kenyan officials have repeatedly said they want to reduce a long running trade imbalance with China by expanding exports, rather than focusing only on imports and project financing.

The update follows President William Ruto’s state visit to Beijing last year, when Kenya and China signed several financing and cooperation agreements. Since then, Nairobi has pushed for export access in goods categories where Kenya believes it can scale competitively, including agriculture-linked exports and light manufacturing inputs.

However, trade analysts say Kenya’s real test will be execution. Preferential access does not automatically translate into higher sales unless producers can meet standards, deliver at consistent volumes, and solve logistics bottlenecks. Therefore, exporters will watch how quickly customs procedures, certification, and shipment routes are aligned to support the new access window.

Kenya’s closer economic engagement with China has also drawn political scrutiny abroad. Reuters reported that some U.S. officials criticised the shift, while Ruto defended the strategy as necessary to reduce the trade deficit and broaden Kenya’s options.

For regional markets, the move could also influence competition. If Kenyan exporters expand into China, it may change how producers allocate supply between Asia, the Middle East, and African markets, especially for products where demand is seasonal.

Next steps for Kenya China trade deal

Kenya’s trade ministry is expected to outline implementation timelines, product coverage details, and the remaining steps toward a comprehensive bilateral deal.

Why it matters

China is a major trade partner for many African economies. Therefore, deeper preferential access can reshape export strategies, foreign exchange inflows, and industrial policy choices in East Africa.