KEPSA WELCOMES AGOA RENEWAL, URGES SUSTAINED MOMENTUM TOWARDS A LONG-TERM U.S.-KENYA TRADE FRAMEWORK

The Kenya Private Sector Alliance (KEPSA) welcomes the signing into law by U.S. President Donald Trump of the extension of the African Growth and Opportunity Act (AGOA), which secures duty-free access to the U.S. market for eligible sub-Saharan African exports through to 31^st December 2028, with all provisions, including the third-country fabric program, retained in full.

This extension follows months of sustained advocacy by KEPSA, alongside government and regional partners, which successfully secured an initial one-year extension reauthorizing AGOA through 31^st December 2026. This additional window marks a major milestone, directly aligning with the core framework requested by private sector players to ensure operational stability.

“This is a significant and welcome outcome for Kenyan businesses and workers. AGOA has been the single most effective U.S. trade policy tool for Africa over the last 25 years, and this extension, with the third-country fabric provision intact, gives our apparel and textile sector the certainty it needs to keep investing and creating jobs,” said Carole Kariuki, KEPSA CEO.

In 2024, Kenya exported $470 million worth of apparel to the U.S. under AGOA, supporting an estimated 66,800 direct jobs, three-quarters of them held by women, and underpinning close to 800,000 livelihoods across the wider value chain. The renewal removes a major source of uncertainty that had weighed on order books, investment decisions, and factory expansion plans across the sector.

KEPSA had called for AGOA’s renewal for a longer horizon, or, failing that, a two-year transition window to allow for the negotiation of a bilateral trade deal between Kenya and the United States. While this extension runs to 2028 rather than the longer term sought, it provides a meaningful window of stability and an opportunity to advance towards a more durable trade arrangement between the two countries.

KEPSA recognises the role played by H.E. President William Ruto in raising the matter directly with U.S. counterparts, as well as the engagement of Kenyan parliamentarians who championed the issue locally. KEPSA also acknowledges the continued uncertainty facing some AGOA beneficiary countries and calls for continued engagement to ensure the programme’s benefits are preserved and broadened across the region.

Looking ahead, KEPSA will continue to work with its members, the Government of Kenya, and development partners to ensure businesses fully capitalise on this extension, while advocating for a long-term, predictable framework for U.S.-Kenya trade beyond 2028.