Kenya’s private sector now wants the government to fast-track negotiations for a
Kenya–United States bilateral trade agreement, saying a long-term deal is
critical to safeguard gains made under AGOA.
The call
follows the formal signing into law of legislation reauthorising the African
Growth and Opportunity Act by US President Donald Trump, extending the
preferential trade programme through December 31, 2026, with retroactive effect
from September 30, 2025.
US has, however, given strict conditions on eligibility while putting Sub-Saharan
countries on notice over corruption and human rights, and opening up markets
for US businesses.
US Trade
Representative Jamieson Greer on Tuesday said to meet AGOA’s rigorous
eligibility requirements, countries must establish or make continual progress
toward establishing a market-based economy, the rule of law, political
pluralism and the right to due process.
“Additionally,
countries must eliminate barriers to U.S. trade and investment, enact policies
to reduce poverty, combat corruption and protect human rights,” Greer said.
Industry
leaders have welcomed the reprieve but cautioned that the short-term extension
underscores the urgency of concluding a permanent trade framework between
Nairobi and Washington.
“To compound
on the gains made through AGOA and provide a long-term and sustainable
framework, we urge the governments of the United States of America and Kenya to
conclude negotiations for the Kenya–US bilateral agreement,” Kenya Association
of Manufacturers CEO, Tobias Alando, said.
Kenya and US have been negotiating for a bilateral tarade pact since July 2020 but a deal has never been realised mainly as a result of regime changes in both countries.
The AGOA extension offers immediate relief to Kenyan exporters, particularly in apparel,
textiles and agribusiness, sectors that have relied heavily on duty-free access
to the U.S. market.
The Kenya
Private Sector Alliance (KEPSA) said the decision protects more than 66,000
direct jobs and hundreds of thousands of livelihoods linked to AGOA-driven
value chains.
“The signing
of this Act provides the immediate certainty required to maintain investor
confidence and protect existing jobs,” KEPSA chief executive Carole Kariuki
said.
“While the
current extension is shorter than the three years initially passed by Congress,
we take note of the U.S. administration’s intent to modernise the programme.”
In 2024,
Kenya exported about $470 million (Sh60.8 billion) worth of apparel to the U.S.
under AGOA.
Overall
exports to the American market stood at $788.6 million (Sh101.8 billion) in
2025, compared to imports of $930.8 million (Sh 120.1 billion) , making the US
one of Kenya’s most important trading partners, accounting for roughly nine per
cent of the country’s external market.
KAM noted
that the extension comes with a renewed spotlight on governance and trade
reforms across Sub-Saharan Africa.
“Compliance
with AGOA’s rigorous eligibility standards is not optional,” Alando said, “Eliminating
trade barriers, fighting corruption and strengthening institutions are
essential not just for AGOA, but for Kenya’s broader competitiveness.”
Since its
inception in 2000, AGOA has helped integrate African economies into global
trade, spurred manufacturing growth and generated foreign exchange.
The private
sector argues, however, that periodic renewals create uncertainty. A bilateral
trade agreement, they say, would lock in market access, encourage higher-value
manufacturing and anchor long-term US investment.
The latest
extension follows months of coordinated advocacy by Kenya’s private sector and
government, including high-level engagements during the 2025 United Nations
General Assembly in New York and the Kenya–US Investment Forum held in
September 2025.
KAM and
KEPSA have both credited the government, led by President William Ruto, for
sustaining diplomatic pressure and advancing trade talks with Washington.
However as the
clock ticks toward 2026, business leaders say AGOA has bought Kenya time—but
not certainty.
The
extension is welcome, Alando said, but a Kenya–US bilateral trade agreement is
the only way to secure a predictable, long-term future for exporters, workers
and investors on both sides of the Atlantic.
