Kenya urged to improve business climate to tap China zero tariffs

China’s envoy says Kenya must improve its business climate, boost competitiveness and support exporters to fully benefit from Beijing’s zero-tariff access for African goods from May 1.

Kenya must strengthen its business environment and support exporters to fully benefit from China’s decision to grant duty-free access to African goods, Beijing’s ambassador to Nairobi Guo Haiyan said, stressing that reforms and competitiveness will determine the outcome.

Speaking at a briefing with Kenyan journalists and scholars, Guo described the full rollout of zero-tariff treatment for African exports as a milestone in China-Africa trade ties. She warned however that countries such as Kenya must act decisively to maximise the opportunity.

China will implement zero-tariff treatment for 53 African countries with diplomatic relations from May 1, 2026. The commitment was first announced at the 2024 Beijing Summit of the Forum on China-Africa Cooperation.

“We hope the Kenyan side will continue to improve its business environment and business climate to attract more Chinese investment and enterprises to seize the opportunity of zero-tariff treatment, improve the quality of export products and achieve economic transformation and structural upgrading,” Guo said.

The initiative is expected to cut export costs and widen access to China’s vast consumer market. But Guo cautioned that structural reforms will be essential to unlock its full benefits.

China began offering partial zero-tariff treatment to selected African exports in 2005 and extended the policy to least developed countries in 2024. The latest move broadens full duty-free access to more African nations with expectations of higher trade volumes and investment flows.

Guo said the policy comes at a time of rising global protectionism and will help African countries navigate tariff barriers while deepening economic ties with China.

“It is a major step and will help African countries be more confident in tackling tariff barriers by some countries,” she said.

She described the zero-tariff framework as a “systematic project” that requires sustained cooperation across trade, investment, technology and services. China is also ready to negotiate broader economic arrangements with Kenya to support long-term growth, she added.

Guo said Kenya could unlock greater gains by focusing on value addition and diversifying exports. She pointed to coffee, tea, avocados and macadamia nuts as products with strong potential in the Chinese market.

China is also offering support through streamlined customs procedures and expanded trade facilitation measures, including a “green lane” system to speed up cargo clearance.

Kenyan businesses have been encouraged to use major trade platforms such as the China International Import Expo and the China-Africa Economic and Trade Expo to promote their products and expand market access.

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