Kenyan exporters have been given two more years to benefit from preferential access to the United States market after President Donald Trump signed legislation extending the African Growth and Opportunity Act (AGOA) to December 31, 2028.
The extension provides relief for Kenyan businesses and investors who had been facing uncertainty over the future of the trade programme as they planned investments, production and export strategies.
Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui welcomed the move, saying it gives exporters, manufacturers and investors greater certainty while creating an opportunity for Kenya to expand beyond its traditional exports.
“This is a significant development for Kenya and provides much-needed certainty for exporters, manufacturers and investors who rely on preferential access to the United States market,” Kinyanjui said.
What is AGOA and why does it matter?
AGOA is a US trade programme that provides eligible African countries with preferential access to the American market for a wide range of products.
For Kenya, the programme has been particularly important to the textile and apparel sector, which is among the country’s biggest beneficiaries and supports more than 66,000 direct jobs, according to the government.
The extension means Kenyan exporters will continue to have access to the trade window while businesses get more time to plan investments, expand production and strengthen their position in the US market.
Which Kenyan industries benefit most?
The textile and apparel industry has traditionally been one of Kenya’s biggest beneficiaries of AGOA.
However, the government is now pushing for a broader export base so that Kenya does not remain heavily dependent on clothing and apparel exports.
Kinyanjui said areas such as value-added agricultural products, leather and leather products, pharmaceuticals and manufactured goods have significant potential in the US market.
“We have significant opportunities in value-added agricultural products, leather and leather products, pharmaceuticals, manufactured goods and other competitive Kenyan products,” he said.
Why is export diversification important?
The additional two years give Kenya more time to move from reliance on a narrow range of exports towards higher-value products.
Rather than exporting raw or minimally processed commodities, the government wants more Kenyan businesses to process agricultural products locally and manufacture goods that can compete in international markets.
This approach could increase the value earned from exports while creating opportunities for investment, manufacturing and employment.
Kinyanjui said the extended AGOA period should therefore be used to “expand Kenya’s export basket and increase the range and value of products reaching the US market.”
What does the extension mean for businesses?
For Kenyan exporters, the extension provides additional time to increase production capacity, develop new products and build relationships with buyers in the US.
It also gives manufacturers and investors greater certainty when making decisions that require significant capital and long-term planning.
The government says it will work with the private sector to increase the use of AGOA and ensure more Kenyan enterprises and value chains benefit from preferential access to the American market.
What happens before AGOA expires?
The extension does not remove the need for Kenya to prepare for the future.
The government wants exporters to use the additional period to become more competitive and diversify their products rather than simply waiting for another extension.
Kinyanjui said Kenya will focus on maximising the extended period by broadening its export base and deepening economic ties with the United States.
He said AGOA should ultimately serve as more than a preferential trade arrangement, becoming a catalyst for industrialisation, value addition, investment and job creation.
For Kenya, the two-year extension therefore offers both immediate relief and a deadline: exporters have until the end of 2028 to strengthen their businesses, expand into new product categories and make greater use of the US market.
