Kenyan business lobby groups, including KAM and KEPSA, have welcomed the extension of the African Growth and Opportunity Act (AGOA) to December 31, 2026, following its reauthorization by U.S. President Donald Trump. This move is expected to alleviate uncertainty for exporters, protect numerous jobs, and enhance Kenya’s access to the U.S. market, despite the extension being shorter than initially hoped.

• The AGOA extension safeguards over 66,000 jobs, particularly in the apparel, textile, and agribusiness sectors.
• KEPSA Chief Executive Officer Carole Kariuki highlighted the immediate certainty this act provides for investor confidence and job protection.
• In 2024, Kenya exported approximately $470 million (Sh61 billion) worth of apparel to the U.S. under AGOA, supporting nearly 800,000 livelihoods.
• KAM Chief Executive Tobias Alando urged both governments to conclude negotiations for a long-term Kenya–U.S. bilateral trade agreement to build on these gains.

Kenya is intensifying efforts to expand its livestock and livestock product markets through the De-risking, Inclusion and Value Enhancement (DRIVE) Project. This initiative aims to boost jobs, exports, and incomes, particularly in pastoral and agropastoral regions.

• The livestock sector contributes about 12 percent of Kenya’s national GDP, with earnings rising to Sh235 billion in 2024.
• The Kenya Development Corporation (KDC) has seen financing disbursements under the DRIVE Project increase from Sh185 million to Sh852 million over the past three years.
• KDC, in partnership with Safaricom, launched KDC Mifugo Cash, a digital credit product offering unsecured loans to 5,000 pastoralists via M-PESA.
• Phyllis Kandie, Advisor on Market Linkages for Trade, emphasized better coordination across production, trade, and quality systems to open new markets.

Yusen Logistics and Africa Global Logistics (AGL) have launched a new joint venture, Yusen Africa (East Africa) Limited, headquartered in Nairobi, Kenya. This new freight forwarding and logistics company will operate from Kenya, serving the broader Eastern Africa region with integrated logistics solutions.

• The new company will support key trade corridors including the Northern Corridor, Central Corridor, and the Ethiopia–Djibouti corridor.
• The partnership combines AGL’s local market expertise with Yusen Logistics’ global network and supply chain capabilities.
• Demand for logistics services in Kenya is rising, driven by East Africa’s role as a trade gateway; Port of Mombasa cargo rose by 10 percent to 45.45 million metric tonnes last year.

Kenyan private sector companies scaled back new hiring in January, attributing the slowdown to rising staff expenses, increased input prices, and subdued demand.

• The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) recorded a drop to 51.9 in January from 53.7 in December, indicating a slower but continued expansion in business activity.
• Economist at Standard Bank, Christopher Legilisho, linked the higher input costs and staff expenses primarily to increased taxes and rising technology costs.
• Despite these challenges, firms were able to reduce their backlogs of work, with some citing sufficient capacity and a slowdown in new order growth.