Nairobi, Kenya- Kenyans working in the textile, apparel and agribusiness sectors have received a temporary lifeline after US President Donald Trump signed into law a one-year extension of the African Growth and Opportunity Act (AGOA), easing fears over job losses and export disruptions.
The move reauthorises the preferential trade programme through December 31, 2026, with retroactive effect from September 30, 2025, when the previous AGOA window lapsed. For Kenya’s export-driven manufacturers, the extension restores certainty—at least in the short term.
AGOA allows eligible African countries to export thousands of products to the United States duty-free, a framework that has underpinned Kenya’s rise as a regional manufacturing hub, particularly in apparel.
US Signals Tougher, Modernised AGOA
Speaking on February 3, US Trade Representative Ambassador Jamieson Greer said the renewed AGOA must deliver stronger outcomes for American businesses while continuing to anchor US–Africa trade relations.
“AGOA for the 21st century must demand more from U.S. trading partners and yield more market access for U.S. businesses, farmers and ranchers,” Greer said.
He added that Washington would work with Congress over the next year to modernise AGOA in line with President Trump’s America First trade policy, signalling potential changes to the programme’s long-term structure.
Relief for Kenyan Workers and Exporters
Kenya’s private sector has welcomed the extension, warning that a lapse would have triggered mass job losses and shaken investor confidence.
The Kenya Private Sector Alliance (KEPSA) said the presidential assent secures livelihoods for over 66,000 workers, mainly in the textile, apparel and agribusiness sectors.
“This reprieve underlines the critical importance of AGOA and reinforces Kenya’s position as a strategic trade partner,” KEPSA chief executive Carole Kariuki said.
She noted that while the extension falls short of the three-year period initially passed by Congress, it provides immediate certainty for exporters and investors.
“KEPSA will immediately embark on Kenya–US trade deal negotiations in collaboration with the government to ensure mutual economic transformation,” Kariuki added.
Manufacturers Call for Long-Term Deal
The Kenya Association of Manufacturers (KAM) said the renewal supports business continuity on both sides of the Atlantic as firms recalibrate supply chains and investment plans.
“The US remains one of Kenya’s most important trading partners, accounting for about nine pc of our external market,” KAM chief executive Tobias Alando said.
Kenya’s exports to the US stood at $788.6 million in 2025, compared to $930.8 million in imports, giving the United States a long-standing trade surplus. Since 2000, US exports to Kenya have totalled $13.3 billion, against $11.6 billion in imports.
In Kenya alone, AGOA-linked industries employ around 68,000 people, supporting nearly 700,000 dependents, according to KAM.
“To secure these gains sustainably, we urge both governments to conclude negotiations for a Kenya–US bilateral trade agreement,” Alando said.
AGOA Conditions and Strategic Stakes
The extension comes with strict eligibility requirements, including adherence to market-based economic principles, the rule of law, political pluralism and respect for human rights.
Beneficiary countries must also remove barriers to US trade and investment, combat corruption and enact poverty-reduction policies.
For the United States, AGOA is equally strategic. The programme saves American consumers an estimated $200–$250 million annually on products such as jeans and uniforms, supports jobs across logistics and retail, and promotes stability in Sub-Saharan Africa by reducing economic drivers of conflict and extremism.
Kenya, alongside other eligible African states, has been lobbying aggressively for AGOA’s renewal since its expiry in September last year, with KEPSA describing it as “the single most effective US policy tool in Africa over the past 25 years.”
