Kenya, UK Partner for a Digital Solution to Free Up Trade and Cut Costs

Kenya and the UK have signed an agreement to free up two-way trade between the two countries.

The agreement was signed on July 26^th by the TradeMark East Africa (TMEA) and the Institute of Export & International Trade (IOE&IT) in London.

Dubbed the UK-Kenya Trade Logistics Information Pipeline (TLIP), the MoU provides a framework for collaboration to implement a digital commercial corridor between the UK and Kenya.

TLIP is the first digital trade corridor to be established between the UK and a developing country since the UK’s exit from the European Union in 2020.

It aims at eliminating paperwork and introducing better visibility in the supply chains flowing between the UK and Kenya.

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The creation of TLIP follows the Economic Partnership Agreement signed in December 2020 between the UK and Kenya, setting out the two countries’ future trading relationships.

That agreement came after the inauguration in January 2020 of the ground-breaking AfCFTA free trade alliance between 54 of the African Union’s 55 countries, aimed at stimulating intra-Africa trade.

The economic relationship between the UK and Kenya has been growing, in both directions, for more than two decades. The two nations believe that TLIP has the potential to further accelerate this growth through reductions in administrative procedures and time to import and export by at least 30 percent and order turnaround times by up to 40 percent.

It will also bring down compliance costs by 20 percent and the duplication of steps in the trading process by as much as 50 percent.

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According to the IOE&IT director-general, Marco Forgione, TLIP will deliver substantial benefits, not only to traders in the relevant supply chains but also to the UK in terms of securing its position as a global leader in digital trade.

“Provisions to improve digital delivery are an increasingly important part of commerce agreements – and it is initiatives like this that will make them succeed,” he added.

“TLIP is also expected to support trade within the AfCFTA, growing trade within the continent and supporting global trade. It will create a transparent, efficient, and cost-effective way of managing trade information to support and boost commercial efficiency between the two countries,” noted TMEA chief executive, Frank Matsaert.

TLIP promises to cut costs for Kenyan firms producing goods like green vegetables and cut flowers for export to the UK, reducing prices for UK consumers, importers, and retailers.

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UK exporters will also be able to benefit from better access to one of Africa’s fastest-growing markets.