Kenya and South Africa have no trade agreement currently. Trade between the two countries is conducted under the most-favoured-nation – World Trade Organization – rules. Kenya is a party to the East African Community (EAC) customs union (CU) and the Common Market for Eastern and Southern Africa (COMESA) free trade area (FTA). South Africa belongs to the Southern African Customs Union (SACU) and the Southern African Development Community (SADC) FTA.

Kenya and South Africa have ratified the Agreement establishing the Tripartite Free Trade Area (TFTA) (not yet in force) negotiated between EAC, COMESA and SADC member states. South Africa and Kenya have negotiated tariff reductions under the EAC-SACU TFTA tariff negotiations, but the agreement is not yet in force.

South Africa is Kenya’s second-largest trading partner in Africa after Uganda. In 2019, Kenyan imports from South Africa amounted to US$688 million (8% increase from 2018), and exports to South Africa were valued at US$32 million (25% decrease compared to 2018). In 2019, Kenya had a trade deficit with South Africa of approximately US$656 million.

In 2019, Kenya’s imports from South Africa were 32% of Kenya’s imports from Africa and 4% of world imports. The exports accounted for 1 per cent of African imports, and 0.6 per cent of the world exports.

Kenya’s export products 2019

In 2019, Kenya mainly exported gold, fresh-cut roses, medium oils, fermented tea, and printing machinery to South Africa (see Table 1). All of Kenya’s world exports of crab, keys, wood, natural uranium, friction materials, central heating radiators and electric lamp assembling parts went to South Africa in 2019.

Table 1: Kenya’s exports to South Africa, as % of total exports to South Africa, Africa and the world

Source: ITC TradeMap (2020) and tralac calculations.

Kenya’s exports are levied MFN tariff duties in South Africa, which is the SACU common external tariff (CET). Kenya’s gold and printing machinery are imported into South Africa duty-free; fresh-cut roses are levied a 20% import duty; and medium oils and fermented tea are levied specific duties of 11c/l, and 400c/kg, respectively.

Kenya’s import products 2019

In 2019, Kenya’s main imports from South Africa included flat-rolled iron/steel products, semi-finished iron/steel products, coal, hot-rolled bars and rods and passenger vehicles (see Table 2). All of Kenya’s African imports of iron/steel products, passenger and goods vehicles, fresh apples, wine, spirits, ciders, medium oils, new pneumatic tyres, chocolate, refrigerators, etc. are sourced from South Africa.

Table 2: Kenya’s imports from South Africa, as % of total imports from South Africa, Africa and world

Source: ITC TradeMap (2020) and tralac calculations.

South Africa’s exports into Kenya are levied MFN tariff duties, which is the EAC CET. The EAC CET has 6 tariff bands: duty-free, 10%, 25%, 35%, 50% and 60%. However, Kenya was granted exceptions for specific products to the EAC CET between 1 July 2018 and 1 July 2019. South Africa’s flat-rolled & semi-finished iron/steel, coal and medium oils were imported into Kenya duty-free. South Africa’s fresh apples, wine, passenger and goods vehicles are levied 25% import duty in Kenya. South Africa’s hot-rolled bars and rods are imported into Kenya either duty-free or face a specific duty of 25% or US$200/MT whichever is higher depending on the tariff line.

All of Kenya’s world imports of wood, unwrought tin, wood, sodium cyanide, precious stones, natural calcium phosphates, live ship and goats, ferro-nickel, sugar beet seed, vanilla, fresh berries, cowpeas and petroleum oils are imported from South Africa.