The Kenyan government has applauded the US Senate's recent approval of a two-year extension to the African Growth and Opportunity Act (AGOA), a move expected to secure duty-free access for Kenyan exports to the US market until the end of 2028.
AGOA, a cornerstone of US-Africa trade since 2000, allows eligible sub-Saharan countries to export thousands of products to the United States without tariffs. The Senate passed the extension with a strong majority of 90 to 6 votes. The legislation now awaits approval from the US House of Representatives and President Donald Trump's signature.
Impact on Kenya's Economy and Jobs
Kenya's apparel exports under AGOA reached approximately Ksh60.6 billion (around $470 million) in 2024, up from Ksh50.8 billion ($393 million) in 2023, according to the Kenya National Bureau of Statistics Economic Survey 2025. The sector supports over 66,000 direct jobs, with the government emphasizing that the extension will protect investments in factories, equipment, and workforce training within Export Processing Zones (EPZs).
Trade Cabinet Secretary Lee Kinyanjui highlighted the importance of the extension for local manufacturers, especially in the garment industry, which contributes about 70% of Kenya's total US exports.
Key Provisions Benefiting Kenyan Exporters
- The extension maintains the third-country fabric provision, enabling Kenyan firms in EPZs to source yarns and fabrics from outside AGOA countries, manufacture locally, and export duty-free to the US.
- AGOA also covers duty-free access for agricultural exports such as cut flowers, tea, coffee, and macadamia nuts.
- More than 6,000 product lines are eligible under the agreement, offering broad opportunities for Kenyan exporters.
The Kenyan government plans to continue strengthening trade and investment dialogue with the US while encouraging local manufacturers and exporters to boost production and capitalize on the extended market access.
