OPINION: Which way for Kenya-US trade relations?
I speak as an investor who has built factories here, not because Kenya offered the cheapest labour or the fastest ports, but because it had something no one else could match: guaranteed duty-free access to the US market. - Kenya breaking news | Kenya news today | Capitalfm.co.ke..
✨ Key Highlights
Kenya's preferential trade access to the US market through the African Growth and Opportunity Act (AGOA) is set to expire on September 30, 2025, threatening a critical economic lifeline. The expiry could devastate Kenya's apparel manufacturing sector, which relies heavily on AGOA's duty-free access.
- AGOA currently supports 66,000 direct jobs in Kenya's apparel industry, indirectly affecting an estimated 660,000 Kenyans.
- Investor Pankaj Bedi warns that without AGOA, Kenyan manufacturers cannot compete globally, risking loss of investment and jobs.
- The article urges Kenya to secure an AGOA extension or pivot to a Kenya-US Free Trade Agreement (FTA), with a mitigation plan prepared to avoid economic collapse seen in other African nations.
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US Implements Policy Changes Affecting Kenyan Trade and Citizens - August 2025
Kenyan businesses face a significant blow after US President Donald Trump scrapped the 'de minimis' tariff exemption for small packages valued under $800 (Ksh103,600). This decision means these packages will now be subject to tariffs and taxes, impacting small business owners who ship to the US. In a separate development, Kenya's preferential trade access via the African Growth and Opportunity Act (AGOA) is set to expire on September 30, 2025, a situation that could devastate the country's apparel manufacturing sector. Furthermore, the Trump administration has announced stricter measures against foreigners, including Kenyans, traveling to the United States primarily to give birth, a move that will lead to visa denials for individuals identified with such intentions.
