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

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


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Kenyan firms seeking to tap into the European market have
been urged to familiarise themselves with the modifying 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 declares should be given more visibility.

The European market accounts for over USD 6 billion worth of Kenya’s exports annually, translating to over Ksh.778.5 billion into the counattempt.

This, however, is now at risk if Kenyan companies fail to
align with the modifying 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,” declared 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
applying 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 supporting 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 acquireers in both domestic and international markets,” Minisattempt 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.



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