The East Africa Advantage: Opening New Growth Avenues Through the UAE-Kenya CEPA

September 2, 2025

Overview

In 2024, the United Arab Emirates (UAE) formalized a Comprehensive Economic Partnership Agreement (CEPA) with Kenya. It was the country’s first CEPA with an African nation, establishing a strategic gateway connecting the Emirates directly with the dynamic, fast-growing markets of East Africa.

Kenya, with a GDP of approximately $110 billion, stands as East Africa's largest economy after Ethiopia and a vital logistics hub housing the bustling Port of Mombasa and Jomo Kenyatta International Airport. Crucially, as a member of the East African Community (EAC), Kenya offers UAE businesses direct access to a wider regional market of over 300 million consumers – a demographic opportunity too significant to overlook.

What the UAE-Kenya CEPA Delivers

Tariff Reductions on a broad spectrum of high-demand categories, such as auto parts, essential construction inputs, industrial machinery, chemicals, and fast-moving consumer goods (FMCG).
Enhanced Market Access for UAE-based exporters and manufacturers, making their products more competitive within Kenya and the broader EAC.
Facilitated Investment Flows, particularly in high-growth sectors like logistics, agribusiness, renewable energy, and advanced manufacturing.
Digital Trade Frameworks, aligning both economies with the future trajectory of global commerce trends.

Opportunities for UAE-Based Businesses

This landmark CEPA opens tangible, sector-specific opportunities for UAE businesses ready to explore the East African market:

Automotive & Spare Parts: Kenya’s vehicle market relies heavily on imports, particularly used cars from Japan. This creates strong demand for batteries, tires, filters, and lubricants – categories where UAE re-exporters already excel.

Construction & Building Materials: Kenya’s significant infrastructure development drives demand for cement, steel, aluminum, plastics, and cabling, areas where UAE manufacturers are highly competitive.

Food & Agribusiness: Kenya imports considerable volumes of processed food, grains, and edible oils. UAE producers can supply packaged goods more competitively, while also investing in agribusiness and cold chain solutions.

Pharmaceuticals & Medical Devices: Kenya’s rapidly expanding pharmaceutical market offers UAE-based producers of generics, vaccines, and medical devices reduced entry barriers under the CEPA.

Renewable Energy & Green Tech: With Kenya generating most of its electricity from renewables, the UAE’s expertise and capital in solar, wind, and green hydrogen projects can support this transition.

Why this CEPA Matters Strategically

The UAE–Kenya CEPA transcends a typical bilateral agreement, representing a strategic pivot with significant long-term implications.

As Kenya’s inaugural CEPA partner, the UAE secures a crucial first-mover advantage, granting Emirati exporters preferential access ahead of competitors from established trading blocs. Furthermore, Kenya's pivotal position within the EAC makes it the logical and most effective entry point into a region boasting over 300 million consumers, offering unparalleled scale for expansion.

This strategic alignment is further strengthened by the strong presence of UAE firms like DP World. They operate key ports and trade infrastructure across Africa, ensuring a seamless logistics integration for the substantial new trade flows anticipated through this agreement.

How DHL Express Can Help Businesses Benefit

While the CEPA lowers trade barriers, realizing its full potential demands effective operational execution. This is precisely where DHL Express adds significant value for UAE companies:

Fast, Reliable Connectivity: Our extensive global network covering 220+ countries ensures swift, dependable connections to Kenya and across the entire EAC region.
Customs Expertise: Deep understanding of international regulations ensures your shipments fully benefit from CEPA's tariff reductions and minimize costly delays.
End-to-End Logistics Solutions: From time-critical express for auto parts to temperature-controlled services for pharmaceuticals and secure handling for high-value goods, we offer tailored solutions.
Supply Chain Resilience: We build resilience with time-definite deliveries and proactive rerouting options, mitigating disruptions.
Digital Integration: Our advanced digital tools seamlessly integrate with e-commerce platforms, helping UAE exporters capture Kenya's growing online retail sector.

With the UAE–Kenya CEPA providing a strong foundation and DHL Express as a trusted logistics partner, UAE businesses can confidently expand into East Africa. This strategic partnership will enable them to diversify revenue streams, forge lasting trade relationships, and become integral players in one of the world's most promising economic regions.

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