Issue Brief on “Pak-Kenya Ties: Future Ahead”

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Pakistan and Kenya have long-standing trade relations and vast potential for bilateral trade. The trade volume between Pakistan and Kenya stood at 705 million USD in 2020 compared to 283 million USD in 2008, showing an upward trend. This upward trend must continue and accelerate as the trade potential between the two states is much higher.[1]

The tariff war between Pakistan and Kenya has finally ended after Pakistan, on August16, 2021, announced the removal of the attestation fee charged by the Pakistani High Commission in Nairobi on tea exports to Pakistan from Kenyan tea traders which was a major impediment in bilateral trade.[2] The fee, which had been charged at a rate of 0.5% of the total export volume, had made Kenyan tea more expensive in Pakistan, thus negatively impacting Kenyan tea exports.[3] The situation erupted between the two countries when Pakistan imposed the attestation fee in response to Kenya’s taxation of Pakistani rice at 75% in 2007.[4]

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