The United States Senate has ratified an extension of the Africa Growth and Opportunities Act (AGOA), ensuring continued duty-free access for eligible Sub-Saharan African exports to the US through December 31, 2028.

Impact on Kenya's Export Economy

Kenya's Ministry of Investments, Trade and Industry hailed the decision as a major boost for the country's export sector. The apparel industry, which represents 70% of Kenya's exports to the US, stands to benefit the most from the renewed agreement.

According to the 2025 Kenya National Bureau of Statistics Economic Survey, apparel exports under AGOA reached KSh 60.6 billion (about USD 470 million) in 2024, marking a 19% rise from the previous year. This sector directly supports over 66,000 jobs, primarily within Export Processing Zones (EPZs), where manufacturers import raw materials from non-AGOA countries, assemble garments locally, and export them under preferential terms.

Broader Trade Benefits

Beyond textiles, AGOA also facilitates tariff-free entry of Kenyan agricultural products such as cut flowers, tea, coffee, and macadamia nuts into the US market, one of the world's largest consumer markets.

Retroactive Duty Refunds

A critical feature of the extension is the provision allowing Kenyan exporters to reclaim duties paid during the gap period between the previous AGOA expiration on September 30, 2025, and the enactment of the new bill. During this interval, exports were subject to standard tariffs despite ongoing shipments.

Cabinet Secretary Lee Kinyanjui confirmed that the Ministry will collaborate with exporters to facilitate refund claims with US Customs and Border Protection, which will process eligible refunds within 90 days.

Outlook and Call to Action

CS Kinyanjui urged the private sector to seize the opportunity by increasing production and investment to fully leverage access to the US market. The Ministry also plans to engage the US government for expanded bilateral trade and investment agreements aligned with Kenya's industrialisation goals, covering over 6,000 product lines eligible under AGOA.