Kenya aims to sign a trade agreement with the US by the end of the year. Commerce Minister Lee Kinyanjui said this would be a guarantee for exports should the current Africa Growth and Opportunity Act (AGOA) program expire this month.
Kenya exported goods worth $737 million to the US in 2023; this figure represents 10% of the country’s total exports.
In particular, the textile and apparel sector provides employment for more than 300,000 people thanks to duty-free access to the US under AGOA.However, the new 10% tariffs imposed by the Trump administration in April and the uncertain future of AGOA have accelerated negotiations. Kinyanjui stated, “There must be an agreement on the table before the end of the year,” adding that it would be a model close to the terms of AGOA.
Despite Kenya’s close relationship with the US, its increasing trade ties with China have drawn criticism in Washington.
President William Ruto argued that they must close the trade deficit by increasing exports to China.According to analysts, Kenya may still benefit if AGOA ends because the 10% tariff imposed on the US is lower compared to countries like Vietnam and South Africa. This could lead to large American retailers turning to Kenya.
