The United States Congress has passed a bill to extend the African Growth and Opportunity Act (AGOA) for an additional three years, a move hailed by Kenyan officials as a critical catalyst for job creation and export growth.
Trade Cabinet Secretary Lee Kinyanjui, in a statement on Wednesday, said the extension will “pave the way for renewed confidence and expansion of national trade and increase exports.” He emphasized that Kenya aims to diversify its exports under the AGOA framework beyond its current stronghold in textiles.
“We aim to grow exports of additional products under the AGOA framework beyond textiles, ensuring that Kenya fully leverages this opportunity to create jobs and generate wealth,” CS Kinyanjui stated.
He highlighted the textile and apparel industries, primarily operating within Export Processing Zones (EPZs), as a model of AGOA’s success. The sector currently employs over 80,000 people directly and supports an additional 250,000 jobs indirectly.
A Cornerstone of U.S.-Africa Trade
First signed into law in the year 2000 by then-President Bill Clinton, AGOA is designed to promote trade and economic growth in Sub-Saharan Africa. The act provides eligible countries with duty-free access to the U.S. market for over 6,000 product lines.
Kenya stands as one of the pact’s largest beneficiaries. The country has leveraged AGOA, particularly for its apparel and textile sector, to generate billions in export revenue and create thousands of jobs within EPZs.
Kenya’s major exports to the U.S. under AGOA include textiles and apparel, coffee, tea, and horticultural products.
Looking Beyond AGOA
CS Kinyanjui also revealed that Kenya is engaged in discussions with the U.S. for a bilateral trade agreement. This potential deal would cover other key sectors and is intended to “further cement Kenya’s long-standing partnership with the US.”
“Expanding our export basket remains a key priority and aligns with our broader strategic economic agenda,” he added.
The AGOA extension comes at a pivotal time for U.S.-Africa trade relations, offering continuity for businesses and investors. For Kenya, it provides a stable platform to push forward its ambitions of economic diversification and inclusive growth, ensuring the benefits of international trade reach a broader segment of its economy.
