Kenya is preparing to increase the number of products accessing the United States market under the African Growth and Opportunity Act (AGOA) after the US House of Representatives endorsed a three-year extension of the trade deal on Monday.
The legislation which now awaits US Senate review is expected to boost trade between Africa and the US at preferential terms after it expired in September last year.
Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui has said the move by the US will boost the confidence in Kenya’s textile and apparel industry which relies on the American market after a period of uncertainty.
“As a Ministry, we aim to grow exports of additional products under the AGOA framework beyond textiles, ensuring that Kenya fully leverages this opportunity to create jobs and generate wealth.
According to ministry data, Kenya’s textile and apparel industries operating within the Export Processing Zones employ at least 80,000 people directly and 250,000 indirectly with majority of products being exported to the US market under preferential terms.
Kinanjui says Kenya is keen on enhancing its exports to the US under AGOA to cover products such as textile and apparel, tea, coffee, horticultural products and tourism services as the country continues to negotiate with the US for a trade deal to expand Kenya’s export base.
“Further, we are in discussions on a bilateral trade agreement that will cover other key sectors and further cement Kenya’s long-standing partnership with the United States,” he added.
Data from the Office of the US Trade Representative indicate that U.S. goods and services trade with Kenya rose 18pc to stand at an estimated $3.3 billion in 2024, compare to $498 million in 2023.
During the period, exports to the US from Kenya increased by 5.8pc to $737.1 million, from $40.4 million in 2023.
Kenya is currently negotiating with the US under the Strategic Trade and Investment Partnership (STIP) which kicked off in July 2022 and covers digital trade, agriculture, anti-corruption, labor rights, and trade facilitation.
