Kenya is set to boost its economy following the U.S. Senate’s approval of the extension of the Africa Growth and Opportunities Act (AGOA), which guarantees duty-free access for eligible Sub-Saharan African exports to the American market until December 31, 2028.
This development is not only a win for Kenya’s exporters but also a reaffirmation of the country’s strategic partnership with the United States. The extension carries a profound significance, with the apparel sector accounting 70% of Kenya’s total exports to the U.S.
The provision is part of the continuation of the third-country fabric provision that ensures firms within the Export Processing Zones (EPZs) can competitively source of raw materials such as yarns and fabrics from non-AGOA countries, adding value locally and exporting the finished garments duty-free.
The Act also provides for retroactive duty refunds, ensuring exporters who ship goods during the gap between AGOA’s expiration in September 30, 2025, and the new enactment will not face financial penalties.
The United States and Kenya remain one of Kenya’s key strategic partners and the extension of AGOA guarantees Kenyan enterprises continued exports of thousands of product lines to the U.S. without the burden of tariff barriers.
Kenya’s utilization of AGOA has been transformative in industrialization and job creation, as the textiles and apparel remains Kenya’s largest beneficiary of AGOA in the garment sector, with over 70% of the total textile and apparel.
The record export value has reached Ksh 60.6 billion (USD 470 million) in 2024, a 19% increase from 2023, which recorded Ksh 50.8 billion.
It has created jobs and wealth creation, with AGOA supporting over 66,000 direct jobs in Kenya generating an approximately Ksh 60.6 billion (USD 470 million) in 2024, creating factories, equipment and training programs that have ensured sustainable livelihoods.
AGOA has boosted agriculture in terms of exports of flowers, tea, coffee and macadamia nuts, giving Kenyan farmers access to premium U.S markets.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui has emphasized the extension as a call to action for the private sector to accelerate production, invest boldly and maximize preferential market access.
