00-0397 MOREPRESS RELEASE
PRESS/TPRB/126
31 January 2000
TRADE POLICY REVIEW BODY
REVIEW OF KENYA
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its
second review of Kenya’s trade policies on 26 and 28 January 2000. The text of the Chairperson’s
concluding remarks is attached as a summary of the salient points which emerged during thediscussion.
The review enables the TPRB to conduct a collec tive examination of the full range of trade
policies and practices of each WTO members countries at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country’s trade policies,
including its domestics laws and regulations, the institutional framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of thediscussion and the Chairperson’s summing-up together with these two reports will be published in due
course as the complete trade policy review of Kenya and will be available from the WTO Secretariat,
Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 and
1999), Australia (1989, 1994 and 1998), Austria (19 92), Bangladesh (1992), Benin (1997), Bolivia
(1993 and 1999), Botswana (1998), Brazil (1992 an d 1996), Burkina Faso (1998), Cameroon (1995),
Canada (1990, 1992, 1994, 1996 and 1998), Chile (1991  and 1997), Colombia (1990 and 1996), Costa
Rica (1995), Côte d’Ivoire (1995), Cyprus (1 997), the Czech Republic (1996), the Dominican
Republic (1996), Egypt (1992 and 1999), El Salvador (1996), the European Communities (1991,1993, 1995 and 1997), Fiji (1997), Finland (1992), Ghana (1992), Guinea (1999), Hong Kong (1990,
1994 and 1998), Hungary (1991 and 1998), Iceland (1994), India (1993 and 1998), Indonesia (1991,
1994 and 1998), Israel (1994 and 1999), Jamaica (1998), Japan (1990, 1992, 1995 and 1998), Kenya
(1993 and 2000), Korea, Rep. of (1992 and 1996), Lesotho (1998), Macau (1994), Malaysia (1993
and 1997), Mali (1998), Mauritius (1995), Mexico (1993 and 1997), Morocco (1989 and 1996), New
Zealand (1990 and 1996), Namibia (1998), Nicaragua (1999), Nigeria (1991 and 1998), NorwayPRESS/TPRB/126
Page 2/3
MORE(1991 and 1996), Pakistan (1995), Papua New Guin ea (1999), Paraguay (1997), Peru (1994), the
Philippines (1993 and 1999), Poland (1993), Roma nia (1992 and 1999), Senegal (1994), Singapore
(1992 and 1996), Slovak Republic (1995), the Solom on Islands (1998), South Africa (1993 and 1998),
Sri Lanka(1995), Swaziland (1998), Sweden (1990 and 1994), Switzerland (1991 and 1996), Thailand
(1991, 1995 and 1999), Togo (1999), Trinidad and T obago (1998), Tunisia (1994), Turkey (1994 and
1998), the United States (1989, 1992, 1994, 1996 a nd 1999), Uganda (1995), Uruguay (1992 and
1998), Venezuela (1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/126
Page 4
MORETRADE POLICY REVIEW OF KENYA
26 AND 28 JANUARY 2000
CONCLUDING REMARKS BY THE CHAIRPERSON
We have had a comprehensive and very interesting review of Kenya's trade policies, which
provided valuable insight into the significant trade reforms and structural adjustment undertaken since
the previous Review, with a view to achieving Kenya's orientation to competitive markets.  This was
made possible both by the detailed information provided by Ambassador Rana and his delegation on
recent and ongoing reforms, and by the high quality of comments made by the discussant and the
participants in this TPRB.  The large number of questions and comments reflected the widespread
interest of Members in recent developments in Kenya as well as the importance they attached toKenya's role in the region and in the WTO.
Members were unanimous in congratulating Kenya for the actions undertaken towards trade
liberalization, particularly as Kenya is an important player in the region.  These steps included the
progressive dismantling of quantitative restrictions, the rationalization of the tariff structure, and thelowering of the average tariff rate.  Members recognized the social impact of these reforms and, it is
my impression, were appreciative of Kenya's efforts in this regard, in particular the introduction of
social safety nets.  In this regard and on a more general level, some Members noted the importance of
coherence both in policies and in the work of international organizations, particularly the WTO and
the IMF.  They congratulated Kenya for fully implementing the WTO Agreement on CustomsValuation and for its determination to implement all WTO obligations.
On the other hand, most Members expressed concern over recent tariff increases for some
agricultural products.  They also noted that "suspended duties" made the tariff regime more distortive
and less transparent.  They encouraged Kenya to consider elimination of such duties and to pursuefurther trade policy reforms, as well as to accelerate the privatization programme to enhance its
macroeconomic stability and facilitate foreign invest ment inflows.  They further encouraged Kenya to
increase the coverage of its tariff bindings, and bring the bound rates into line with applied rates with
a view to increasing tariff predictability for trading partners.
At the same time, Members recognized the large number of legislative changes already
implemented to improve transparency and accountability.  Members expressed particular interest in
areas where WTO-related technical assistance might be useful.
Members also asked for details in a number of more specific areas including:- plans to incorporate WTO Agreements into Kenyan law;
- customs valuation, transparency and predictability of customs procedures, and plans
to facilitate customs clearance;
- conditions for granting exemptions to compulsory standards;
- main provisions of the new anti-dumping and countervailing legislation;
- legislation on government procurement and any plans to become a signatory to the
WTO Agreement on Government Procurement;
- recent progress on amendments to intellectual property legislation, including its
coverage and enforcement activities;PRESS/TPRB/126
Page 5
END- implementation of competition policy, including number of appeals, and transborder
anti-competitive behaviour;
- ratification of the Fifth Protocol to the GATS, and further liberalization and
privatization of the telecommunications sector;
- progress in regional trade liberalization under COMESA and the EAC, as well as the
impact of such agreements on economic growth and public revenue;
- foreign investment legislation, efforts to increase transparency and stability of the
investment regime, in particular criteria for approval of investment projects, any
discrimination in the granting of incentives, and bilateral investment treaties;
- marketing boards in the agricultural sector;
- the industrialization strategy, as well as the situation of the textiles and clothing
sector; and
- access to export markets for Kenyan products.
Members appreciated the frank and comprehensive responses provided by the Kenyan
delegation, noting in particular the assurance that ongoing reforms were designed to reduce barriers to
foreign participation in the Kenyan economy, based on the belief that an open trade and investment
regime contributed to sustainable development, and thereby to the reduction of poverty;  the reform
programme, which would not be relaxed, should add further transparency, public accountability and
predictability to the business environment.
In conclusion, it is my feeling that this has been a most successful Review of Kenya's trade
policies.  Members appreciate Kenya's determined efforts to improve its economic environment, and
the central role of trade policy in this respect, so as to be fully able to benefit from its favourable
resource base and achieve sustainable growth to the benefit of all its people, alleviating poverty.Kenya's active participation in the WTO seems to me to be central to this effort and I urge all
Members to support Kenya in its ongoing efforts.  In this respect, I think we should pay particular
attention to Kenya's request to the Membership for technical assistance and for improved access to
markets.