Kenyan manufacturers are anticipating that the government will strike an interim trade agreement with the United States before the expiry of the African Growth and Opportunity Act (AGOA) at the end of this month.
According to the Kenya Private Sector Alliance (KEPSA), Kenyan exporters could be exposed to higher costs upon expiry of AGOA on September 30, 2025.
Kenya is among countries the US placed a reciprocal tariff announced by President Donald Trump in April this year. According to the executive order, goods entering the US from Kenya attract a 10pc tariff.
During a roundtable organized by KEPSA and GATSBY bringing together top 10 US retailers and textile and apparel importers, Kenyan exporters backed renewal of AGOA for another 16 years or a short-term transition window of a minimum 1-2 years in case of non-renewal as Kenya negotiates a comprehensive trade deal with the Trump administration.
Speaking during the roundtable, Investment, Trade and Industrial Cabinet Secretary Lee Kinyanjui said Kenya has submitted all necessary information to the US which will be used to consider extension of AGOA as well as conclude some trade agreements.
“With our skilled workforce, reliable production, and preferential access to the U.S. market, Kenya is ready to scale as a trusted partner,” said Kinyanjui through his official X account.
Kenya is currently looking to strike an exclusive trade deal with the US under the Strategic Trade and Investment Partnership (STIP).
“We are committed to a vibrant and sustainable textile and apparel sector, anchored on policy reforms, stable investment conditions, and strategic market access,” he added.
Through the trade pact established in 2000 at least 1,800 products from Sub-Saharan African countries including Kenya have access to the US duty-free while 5,000 others are eligible for duty-free under Generalized System Preferences program.
Official data show that Kenya was the leading textile and apparel products exporter to the US last year with exports valued at Ksh 68.4 billion $530m).
“The complexities remain that AGOA is a multilateral trade agreement, whereas the current administration’s preference is bilateral Trade agreements. Hence, Kenya remains at the discretion of the U.S., although all efforts remain focused on some reprieve beyond 30th September 2025 when the current AGOA trade preference program expires,” said KEPSA.
The private sector lobby group says a favourable trade agreement after Tuesday next week could boost Kenya’s apparel exports to the US to at least $2b and create some 200,000 new jobs.
