The recent approval by the U.S. House of Representatives to extend the African Growth and Opportunity Act (AGOA) by three years marks a pivotal moment for Kenyan exporters and the nation’s broader economic trajectory. AGOA, the foundation of preferential trade between Sub-Saharan Africa and the United States since 2000 was allowed to lapse on September 30, 2025, creating uncertainty for Kenyan manufacturers and exporters that rely heavily on duty-free access to the U.S. market. The House vote now sends the bill to the U.S. Senate, with strong prospects for final approval and enactment, anchoring preferential access until December 31, 2028. There’s a lot of positives that Kenya will gain from AGOA extension among them:
1.Restoring confidence and market access for Kenyan exports
Kenya has historically been one of the leading beneficiaries of AGOA, especially in the textile and apparel sectors. Under the duty-free provisions, exports of garments and apparel to the U.S. market grew substantially, with earnings of approximately Ksh 60.6 billion in 2024, representing almost a 19.2 % increase over the prior year. The AGOA extension provides certainty and predictability to Kenyan exporters, particularly for export processing zone (EPZ) firms that depend on foreign orders tied to U.S. brands and retailers. With preferential access restored and the possibility to claim refunds on duties paid during AGOA’s lapse, Kenyan manufacturers can stabilize production planning, maintain buyer relationships, and avoid disruptive tariff barriers that could otherwise price Kenyan goods out of the U.S. market.
2.Protecting and growing jobs in key sectors
The textile and apparel industry in Kenya is a major employer, with over 66,000 direct jobs in EPZs alone, and indirect employment reaching significantly higher figures when associated services are included. Without AGOA’s duty-free status, many of these jobs were under threat due to tariffs ranging into the 15 – 42 % bracket, making Kenyan products less competitive against global rivals such as Bangladesh and Vietnam. The extension mitigates this risk, ensuring continued employment, income generation, and economic stability for thousands of Kenyan families.
3.Expanding export opportunities beyond apparel
While textiles have been at the forefront, AGOA’s preferential access extends to over 6,500 products, including agricultural and value-added goods such as coffee, tea, macadamia nuts, flowers, and processed foods. Speaking on the expected extension of the African Growth and Opportunity Act (AGOA) by the Trump administration, Kenya Export Promotion and Branding Agency (KEPROBA) CEO Ms. Floice Mukabana noted that,
“The renewal of AGOA provides much needed certainty to our exporters, particularly in apparel and textiles, and reinforces Kenya’s competitiveness in the U.S. market. While we remain committed to diversifying products and markets, duty free access under AGOA will help sustain jobs, attract investment, and stimulate value addition across key sectors. It is a catalyst for Kenya’s export-led growth and economic transformation.” KEPROBA will leverage the renewed AGOA window to support diversification of Kenya’s export base.
Initiatives will include: a) Promoting non-traditional exports (e.g., horticulture, processed agricultural products, and light manufacturing). b) Facilitating market intelligence and buyer linkages in the U.S. through trade missions, expos, and digital platforms. c) Supporting Kenyan producers to meet U.S. regulatory and standards requirements, enhancing competitiveness.
4.Catalyzing Investment and Industrial Growth.
The predictability that comes with an extended preferential trade regime is a strong signal to both domestic and foreign investors. AGOA has historically attracted investment into Kenya’s textile, apparel, and Agro-processing sectors, encouraging capital inflows, technology transfer, and skills development. With the renewed AGOA timeline, Kenya is positioned to scale up its industrialization agenda, in line with the government’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes export-oriented manufacturing for jobs and growth.
5.Supporting Strategic Trade Policy and Regional Integration
The AGOA extension buys essential time for Kenya to negotiate deeper bilateral trade arrangements with the United States, aiming for longer-term market access beyond 2028. President Ruto and key government leaders have signaled intentions to move toward a comprehensive U.S.–Kenya trade deal that could further solidify Kenya’s export competitiveness. Additionally, Nairobi will continue to harness regional frameworks such as the African Continental Free Trade Area (AfCFTA) to diversify markets and build integrated value chains that reduce dependence on any single market. The successful passage of the AGOA extension by the U.S. House of Representatives is a major win for Kenya’s exporters and economy. It not only safeguards existing trade flows but also reinvigorates confidence for expansion into new product lines, markets, and investment opportunities. For an export-driven growth strategy, this extension offers a critical platform from which Kenya can secure more robust market access, create sustainable employment, and anchor long-term industrial growth. As Kenya Export Promotion and Branding Agency our commitment is to mobilize public-private partnerships, enhance export readiness, and ensure that Kenyan products continue to shine in global markets starting with the United States.
The above article was originally written by Kenya Export Promotion and Branding Agency (KEPROBA)