24 September 2018 04:01 PM

Economic Relations

Thursday، 17 December 2015 12:00 AM

Trade relations between Egypt and Kenya have seen a positive development as a result of both countries membership in COMESA, as well as Egypt's belief in promoting trade with African countries especially COMESA countries, not in search of lower cost, but because of its belief in the importance of cooperation between countries of the African continent to achieve the wellbeing of their people, and in light of the importance of the COMESA bloc to Egypt and in particular Kenya as the two countries have a leading role in COMESA that will enhance the competitiveness of the bloc against other rival regional economic blocs.

It should be noted that tea is the most important Egyptian import from Kenya, as it constitutes more than 95% of total Egyptian imports. It should also be noted that the improvement in the access of Egyptian products to the Kenyan market is due to both countries' membership in COMESA, and the abolition of tariffs on both countries' imports.

The most important Egyptian exports to Kenya are: sugar, molasse, iron and steel products, tires and car batteries, paper products, chemicals, detergents, cables and connectors, electrical transformers, pharmaceutical products and medicine, engineering equipment, insulation material , rice, house appliances, rugs and carpets, petroleum oils, , wax, paraffin , air conditioning appliances - Furniture –telephone exchanges - plastics and paints – ceramic, flour, chocolate and sweets - juices and jam - sanitary ware - TVs - Cement - soap - fertilizers.

Egyptian imports from Kenya are: tea, tobacco, tires, chemicals, oils, sisal, recently: fruits and vegetables, fresh cut flowers, dried flowers printing inks.

Trade Exchange

The volume of bilateral trade between Egypt and Kenya in 2007 was around $ 320 million, where the volume of Egyptian exports to Kenya increased by 48.9% to reach $ 176 million. This was the first time in 20 years that the balance of trade was in favor of Egypt with a surplus of $ 34.4 million dollars.

Furthermore, the volume of bilateral trade between the two countries in 2008 was around 378.3 million dollars, as trade data indicates that Egyptian exports to Kenya amounted to 156.2 million dollars while imports from Kenya amounted to 222.1 million dollars, with $ 65.9 million of surplus in favor of Kenya. This unprecedented increase in the value of Kenya's exports to Egypt in 2008 is due to the increase of the volume and value of exports of tea to Egypt, which is ranked as the first importer of Kenyan tea.

Contractual Framework

Agreements signed and ratified by both parties

• Agreement on trade signed on the 28/11/1980.
• General Agreement in the field of Economic and Technical Cooperation signed on the 28/11/1980.
• Cooperation Agreement in the field of tourism signed on the 25/6/1987.
• Culture Cooperation Agreement signed on the 25/6/1987.
• Cooperation Agreement between chambers of commerce of both countries signed on the 13/1/1996.
• Executive Programme on Educational, Scientific and cultural cooperation signed on the 13/1/1996.
• Memorandum Of Understanding on consultations between the Ministry of Foreign Affairs of the Arab Republic of Egypt and the Ministry of Foreign Affairs of the Republic of Kenya signed on the 19/1/2007.
• MOU between the Ministries of Foreign Affairs of both countries for Cooperation in Diplomatic and Foreign Service Studies signed on the 19/1/2007.

Agreements signed by both parties and ratified by Egypt
• Cooperation Agreement in the fields of Media and Communication signed on the 13/1/1996.

Agreements signed with First initials
• Air Transport Agreement signed with first initials on the 24/6/1978.

Agreements signed by both parties
• Executive Programme in the field of Tourism signed on the 13/1/1996.
• MOU on Cooperation in the fields of Media and Communication and Information signed on the 29/1/2002.
• Executive Programme on Educational, Scientific and cultural cooperation for the period between 2010-2013 signed on the 3/2/2010.
• MOU on cooperation in Youth Affairs signed on the 3/2/2010.
• MOU between the Ministry of Agriculture and Lands Reclamation of the Arab Republic of Egypt and the Ministry of Fisheries Development of the Republic of Kenya on Cooperation in Fisheries Sector signed on the 3/2/2010.
• MOU on Cooperation in Higher Education, Science and Technology signed on the 3/2/2010.
 


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