Manufacturers Push for Multi-Billion Trade Deal Between Kenya and US
Kenya continues advancing a separate bilateral trade agreement with the US to secure long-term trade beyond AGOA...
✨ Key Highlights
The Kenya Association of Manufacturers (KAM) is urging Kenya and the U.S. to fast-track a long-term bilateral trade agreement following the 16-month extension of the African Growth and Opportunity Act (AGOA). This move aims to create a sustainable trade framework beyond temporary renewals, ensuring predictability for exporters and investors.
- Bilateral trade between Kenya and the U.S. has seen U.S. exports to Kenya reach KSh 2.1 trillion and Kenyan exports to the U.S. total KSh 1.8 trillion over the last 20 years.
- KAM Chief Executive Tobias Alando emphasized that this extension provides a critical window to finalize a pact that guarantees continued access to the U.S. market.
- AGOA has created approximately 68,000 jobs in Kenya, indirectly supporting nearly 700,000 dependents, primarily in textiles, apparel, and agriculture, with Kenyan exports to the U.S. reaching Ksh126 billion in 2025.
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US Extends AGOA as Kenya Pursues New Duty-Free Trade Deal with China - February 2026
US President Donald Trump has signed a one-year extension of the African Growth and Opportunity Act (AGOA), restoring duty-free access for eligible Sub-Saharan African countries until December 31, 2026. This extension, backdated from September 30, 2025, prevents potential tariffs of up to 42 percent on Kenyan goods. Following this development, the Kenya Association of Manufacturers (KAM) is urging Kenya and the U.S. to fast-track a long-term bilateral trade agreement to ensure predictability for exporters. Concurrently, Kenya is set to sign a duty-free, quota-free trade agreement with China within the next 30 days. This deal will allow Kenyan farmers to export products such as avocados and pork with zero tariffs, aiming to boost the country's agricultural export sector.
