Kenyan firms urged to align with EU sustainability standards or risk losing market

Kenyan firms seeking to tap into the European market have been urged to familiarise themselves with the changing sustainability requirements in the market or risk losing out.

Speaking to business owners, Dirk Hoffmann from the Danish Institute for Human Rights noted that although most Kenyan companies align with international labour standards, they have not done enough to share their processes, attracting more scrutiny on their products — an issue he says should be given more visibility.

This, however, is now at risk if Kenyan companies fail to align with the changing sustainability regulations in the EU market.

According to experts, although Kenya has secured favourable trade deals in the European market, some exporters are struggling to keep up with the latest requirements.

"Sustainability is now equal to competitiveness. Seven in ten European consumers prefer ethically sourced products. Kenyan exporters must align with global sustainability standards to retain and grow market access," said KNCCI representative Leilah Muhandale.

Hoffmann added, "There is a lot of work to be done by business networks and by the government to demystify what this actually means. A lot of it is not rocket science. We are using the term 'human rights due diligence,' so companies should be aware of what issues they could be impacting with their business or business partners. They should take steps to address these risks and, most importantly, communicate about them. A lot of Kenyan companies are already doing many good things, but they are not talking about it."

The government, on its part, has reaffirmed its commitment to helping Kenyan exporters navigate the rapidly evolving global regulatory landscape.

"We are supporting MSMEs to adopt ethical and environmentally responsible standards, to access green finance and sustainability certifications, and to enhance compliance with international standards while connecting them with responsible buyers in both domestic and international markets," Ministry of Trade representative Simon Chelelgo stated.

With Kenya exporting agricultural products worth Ksh.190 billion annually to the European Union market — predominantly in coffee, tea, and horticulture — new developments such as the EU Green Deal and corporate sustainability rules are likely to have a huge impact, with investors now being urged to embrace responsible, ethical, and sustainable business for posterity.