Nairobi: Kenyan exporters have received a significant boost with the extension of the African Growth and Opportunity Act (AGOA) to December 31, 2028. This extension ensures the continuation of duty-free access to the US market for eligible sub-Saharan African products.
According to Kenya News Agency, the extension, signed into law by US President Donald Trump, also maintains the third-country fabric provision. This development brings renewed stability to Kenya’s apparel and textile industry, which relies heavily on preferential access to the US market. A press release by the Kenya Private Sector Alliance (KEPSA) highlighted the potential for stabilizing export orders, boosting investment, and expanding factories while safeguarding thousands of jobs in the sector.
KEPSA Chief Executive Officer Carole Kariuki expressed approval of the extension, emphasizing AGOA’s effectiveness as a US trade policy instrument for Africa over the past 25 years. Kariuki stated that the retention of the third-country fabric provision would enable the apparel and textile sector to invest with greater confidence and create more employment opportunities.
In 2024, Kenya exported apparel valued at approximately USD 470 million to the US under AGOA, supporting around 66,800 direct jobs, the majority held by women, and sustaining nearly 800,000 livelihoods across the broader value chain. The extension follows extensive lobbying efforts by KEPSA, the Kenyan Government, and regional partners after an initial one-year renewal extended the program to December 2026.
KEPSA had advocated for a longer renewal or a two-year transition period to negotiate a bilateral trade agreement between Kenya and the US. While the extension does not fulfill the private sector’s long-term goals, KEPSA acknowledges the critical opportunity it presents to pursue a more stable and predictable trade framework between the two nations.
The private sector body also recognized the efforts of President William Ruto and Kenyan parliamentarians in advocating for the renewal. KEPSA, Kariuki noted, will continue collaborating with the Government, businesses, and development partners to maximize the benefits of the extension and push for a long-term US-Kenya trade agreement beyond 2028.
