By TWV Team
Kenya and other African countries risk losing billions of shillings in exports to the United States as President Donald Trump appears reluctant to renew the African Growth and Opportunity Act (AGOA), which is due to expire at the end of this month.
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Talks on signing a new strategic trade and investment partnership, which began in 2021, remain inconclusive, raising concerns that Kenya could lose the preferential arrangement that has long supported the apparel and floriculture industries. The situation is compounded by a 10 percent tariff imposed on some textile exports to the US, threatening the gains made under AGOA as Trump pushes his “America First” policy.
More than 58,000 direct jobs in the apparel sector, alongside a similar number of indirect jobs, depend on AGOA exports.
Last year, Kenya was the leading exporter of textile and apparel products to the US under AGOA, valued at KSh95.3 billion (US$737.3 million), primarily in apparel, coffee, and tea, according to the Office of the US Trade Representative. Apparel alone earned KSh60.6 billion (US\$470 million), marking a 19.2 per cent increase from KSh50.8 billion in 2023, the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025 shows. This represented 116 million pieces in 2024, up from 97.3 million pieces the previous year.
Beyond textiles, over half a million people depend on the floriculture industry, including more than 100,000 flower farm employees, impacting the livelihoods of over two million Kenyans.
Kenya has been actively lobbying for an extension of AGOA. Trade and Investment Cabinet Secretary Lee Kinyanjui recently travelled to Washington for talks on the future of Kenya’s trade and investment ties with the US.
“We are doing everything possible to ensure Kenya remains a globally competitive investment destination. Our discussions in Washington were strategic and focused on ensuring that AGOA continues to serve as a driver of industrialisation and job creation,” he told exporters under the Export Processing Zones (EPZ) programme in June.
During his visit, Mr Kinyanjui underscored Kenya’s keen interest in commencing formal negotiations with Washington, stressing that a reciprocal trade agreement is essential for securing long-term access to the US market and for providing the stability needed to unlock new investments.
Prime Cabinet Secretary Musalia Mudavadi also raised the issue during a recent meeting with Susan M. Burns, Chargé d’Affaires at the United States Embassy in Nairobi.
Although President William Ruto has strengthened ties with China, Kenya remains eager to maintain access to the US market while attracting foreign investment.
Last month, it was revealed that the government has retained US-based firm Continental Strategy LLC, owned by Carlos Trujillo, a former Trump administration official and close ally, at a fee of US$175,000 (KSh23–27 million) per month. The firm will lobby US policymakers and government institutions on Kenya’s behalf in areas such as trade, security, and diplomacy.
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