Trump Showered With Praises as Kenya Wins Two-Year AGOA Extension

Kenyan businesses have gained two more years of duty-free access to the United States market after President Donald Trump signed legislation extending the African Growth and Opportunity Act (AGOA) to December 31, 2028.

This extension gives exporters more time to trade under the preferential arrangement, providing much-needed certainty to sectors that have faced months of uncertainty over the future of the programme.

Kenya Private Sector Alliance (KEPSA) welcomed the move, saying the extension will help businesses plan investments, maintain orders and protect jobs linked to exports to the US.

“This is a significant and welcome outcome for Kenyan businesses and workers,” KEPSA CEO Carole Kariuki said.

She described AGOA as the single most effective U.S. trade policy tool for Africa over the last 25 years, adding that retaining the third-country fabric provision was particularly important for Kenya’s apparel and textile industry.

Kenya’s Apparel Sector Gets More Time to Plan

Kenya’s apparel industry is among the biggest beneficiaries of AGOA, with the preferential access allowing eligible products from the country to enter the US market without tariffs.

In 2024, Kenya exported apparel worth about Ksh60.9 billion to the United States under the programme, according to KEPSA.

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That trade supports an estimated 66,800 direct jobs, with women accounting for about three-quarters of the workforce.

The wider value chain supports close to 800,000 livelihoods, making the programme an important source of employment beyond the factories themselves.

Businesses had faced uncertainty over whether AGOA would continue, raising concerns about orders, investment and plans to expand production.

The extension to 2028 now gives manufacturers and exporters a longer window to make those decisions.

Retention of the third-country fabric provision is also significant for Kenya’s garment industry.

This provision allows eligible African apparel producers to use fabric sourced from countries outside the region while still qualifying for AGOA benefits.

KEPSA said the provision gives the sector the certainty it needs to continue investing and creating jobs.

For workers and businesses that depend on the apparel trade, the additional time could therefore provide some relief after months of uncertainty over the programme’s future.

KEPSA Pushes for Longer-Term Trade Deal

KEPSA had been pushing for a longer extension of AGOA or, at minimum, a two-year transition period that would give Kenya and the US time to negotiate a bilateral trade agreement.

It acknowledged that the latest extension falls short of the longer-term arrangement it had sought but said the 2028 deadline still provides an important opportunity to pursue a more permanent framework.

Kenya and the United States have been working to deepen their trade relationship, with discussions on a possible bilateral arrangement expected to remain important as the new AGOA period progresses.

KEPSA also recognised the role played by President William Ruto in raising the issue with US counterparts, as well as Kenyan parliamentarians who supported efforts to secure the extension.

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The private sector body said it will continue working with the government, its members and development partners to ensure Kenyan businesses make full use of the additional period.

Beyond 2028, however, businesses will still want greater certainty on what comes next.

For now, the extension gives Kenyan exporters more time to operate under AGOA, protect existing markets and prepare for a longer-term trade relationship with the United States.

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KEPSA CEO Carole Kariuki. PHOTO/ PEOPLE DAILY.