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October 1, 2025
2h ago

What Kenya Needs to Secure New US Trade Deal as AGOA Expires

What Kenya Needs to Secure New US Trade Deal as AGOA Expires

AGOA expired on Tuesday, September 30, nearly two decades after it was first enacted...

✨ Key Highlights

As the Africa Growth Opportunity Act (AGOA) expired on September 30, Kenya faces conditions to secure a new trade deal with the United States. This expiration jeopardizes Kenya's exports worth billions of shillings and the employment of thousands.

  • The AGOA provided tariff exemptions for over 30 countries, with textiles, tea, and coffee being key Kenyan exports.
  • Kenya Association of Manufacturers (KAM) boss Tobias Alando stated that a key condition for a new deal is for Kenya to cease sourcing raw materials, like cotton for textiles, from China and India.
  • The solution proposed is for Kenya to revive its cotton industry, building local capacity to avoid disruptions from trade tensions between the US and other nations.
  • The AGOA's expiry has left over 66,000 Kenyans concerned about their jobs, as textile exports have risen to $500 million (Ksh64.6 billion) since the pact's inception.
  • Despite the expiry, reports from the White House indicate President Trump supports a one-year extension of AGOA, and President William Ruto anticipates a new bilateral agreement with the US by year-end.

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