Kenyan exporters have received a major boost after the United States extended the African Growth and Opportunity Act (AGOA) to December 31, 2028, preserving duty-free access to the US market for eligible sub-Saharan African products.
The extension, signed into law by US President Donald Trump, also retains the third-country fabric provision, providing renewed certainty for Kenya’s apparel and textile industry, which relies heavily on preferential access to the US market.
In a press release by the Kenya Private Sector Alliance (KEPSA), the extension would help stabilize export orders, investment and factory expansion while safeguarding thousands of jobs and livelihoods linked to the apparel sector.
KEPSA Chief Executive Officer Carole Kariuki welcomed the move, saying AGOA had remained one of the most effective US trade policy instruments for Africa over the past 25 years.
“This is a significant and welcome outcome for Kenyan businesses and workers,” Kariuki said, noting that retaining the third-country fabric provision would give the apparel and textile sector greater certainty to invest and create jobs.
In 2024, Kenya exported apparel worth an estimated USD 470 million to the US under AGOA, supporting about 66,800 direct jobs, 75 per cent of them held by women, while sustaining nearly 800,000 livelihoods across the wider value chain.
The extension comes after months of lobbying by KEPSA, the Government and regional partners, following an earlier one-year renewal that had extended the programme to December 2026.
KEPSA had pushed for a longer renewal period or, alternatively, a two-year transition window to allow Kenya and the US to negotiate a bilateral trade agreement.
Although the extension falls short of the longer-term arrangement sought by the private sector, KEPSA said it provides a critical window to pursue a more permanent and predictable trade framework between the two countries.
The private sector umbrella body also acknowledged President William Ruto’s engagement with US counterparts and the role played by Kenyan parliamentarians in pushing for the renewal.
KEPSA, Kariuki said, would continue working with the Government, businesses and development partners to maximize the benefits of the extension while advocating for a long-term US-Kenya trade framework beyond 2028.
By Wangari Ndirangu
