Kenya has vowed to challenge a regional court decision that suspended a crucial trade agreement with the European Union, warning the move puts USD 1.56 billion in yearly exports and hundreds of thousands of jobs at risk.
Trade minister Lee Kinyanjui said on Wednesday the government has already filed an appeal against Monday’s ruling by the East African Court of Justice (EACJ) that stopped implementation of the Economic Partnership Agreement (EPA).
Court suspends deal over regional treaty concerns
The Arusha-based court granted a temporary injunction after the Uganda-based Centre for Law, Economics and Policy on East African Integration argued that Kenya’s bilateral pact with the EU violates the East African Community treaty.
“The Kenya-EU EPA is the lifeline of our booming exports and a source of livelihood to a large majority of Kenyans,” Kinyanjui said in a statement, adding that the government was working to guarantee continuity of existing trade arrangements.
What the EPA means for Kenya
The agreement, signed on 18 December 2023 and provisionally applied from 1 July 2024, gives Kenyan goods duty-free and quota-free access to the 27-nation bloc while gradually opening the local market to European products over 25 years.
Kenya exported USD 1.56 billion worth of goods to the EU last year, mainly cut flowers, vegetables and fruit, against imports worth USD 2.09 billion.
The horticulture industry directly employs more than 500,000 people and supports millions more along the value chain, with Europe taking over 70% of Kenya’s flower exports.
Regional tensions resurface
Kenya went ahead with the bilateral deal after EAC-level talks collapsed in 2014, a decision other partners have viewed with suspicion, fearing it could undermine the bloc’s customs union.
The court said allowing further implementation before the main case is heard would cause irreparable damage to regional integration.
Broader trade shifts
The dispute comes as African countries seek alternative markets following higher United States tariffs on some exports under the African Growth and Opportunity Act this year.
Kenya sees the EPA as vital insurance against such shocks while supporting goals of the African Continental Free Trade Area.
European Commission officials have played down immediate disruption, saying provisional application keeps current trade terms in place.
Appeal timeline unclear
Analysts expect the appeal process to take several months and warn it could strain relations within the seven-member EAC if other countries intervene.
“This ruling tests the balance between national interests and regional solidarity,” said Nairobi economist Dr Miriam Omolo of the African Policy Research Institute. “Kenya’s solo approach might inspire others but risks weakening the EAC’s bargaining power.”
Kenyan exporters, especially in the Naivasha flower belt, are watching closely, with industry leaders calling for swift resolution to avoid any return of tariffs.
The government insists trade with Europe will continue normally while the legal battle plays out before the EACJ appellate division.
Agencies contributed to this report
