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Kenya Steps Up Push to Extend AGOA, Protecting Jobs and Boosting Exports

  • Writer: OUS Academy in Switzerland
    OUS Academy in Switzerland
  • Sep 18
  • 3 min read

Kenya is intensifying efforts to secure an extension of the African Growth and Opportunity Act (AGOA) as its expiry date approaches at the end of this month. The government, manufacturers, and trade organizations are working closely to safeguard jobs, sustain export growth, and keep Kenya competitive in global trade.


Why AGOA Is Vital for Kenya

AGOA allows eligible African countries, including Kenya, to export thousands of products to the United States without paying import duties. For Kenya, this has been a game-changer. Over the last two decades, AGOA has supported the country’s textile and apparel sector, agriculture exports, manufacturing industries, and value-added processing.

The program has created tens of thousands of jobs, especially for women and youth working in garment factories and farms supplying raw materials such as cotton and fresh produce. It has also attracted foreign investments into industrial parks, special economic zones, and training centers that prepare workers for international markets.

Without AGOA, Kenyan exporters fear losing competitiveness as tariffs on key products could rise sharply, threatening both jobs and export revenues.


The Current Campaign in Washington

This week, a high-level Kenyan delegation held over thirty meetings with U.S. lawmakers and trade officials in Washington, D.C. Their message was clear: an AGOA extension, even for one or two years, would give businesses the stability they need to plan ahead, secure orders, and keep production lines running.

Exporters argue that without the extension, some tariffs could rise from 10% to over 40%, especially for synthetic textiles, making Kenyan goods too expensive for U.S. buyers. Such a sudden change could disrupt entire supply chains and put thousands of workers at risk.


Economic Impact of an Extension

Securing the AGOA extension would have far-reaching benefits:

  • Job Protection: Thousands of factory and farm workers would keep their livelihoods.

  • Foreign Exchange Stability: Export earnings help Kenya manage its trade balance and currency needs.

  • Investor Confidence: Predictable trade policies attract long-term investments into manufacturing and logistics.

  • Regional Trade Growth: Stronger industries in Kenya can also supply Arab, European, and Asian markets, not just the United States.

  • Infrastructure Development: More exports mean more revenues to invest in transport, energy, and digital infrastructure.


Role of Arab–Kenya Trade Relations

The Joint Kenya–Arab Chamber of Commerce and Industry (JKACCI) emphasizes that stronger Kenya–U.S. trade ties also benefit Arab markets. When Kenyan industries expand under AGOA, they become more capable of supplying high-quality goods—such as fresh produce, processed foods, and textiles—to Gulf countries, North Africa, and beyond.

Arab investors looking at Kenya see a country with growing infrastructure, skilled labor, and access to multiple markets. A stable trade regime like AGOA strengthens Kenya’s position as a gateway between Africa, the Middle East, and Western markets.


The Way Forward

Experts recommend that Kenya should:

  1. Continue Diplomatic Engagement: Keep lobbying in Washington until a decision is made.

  2. Diversify Markets: Expand exports to Arab, Asian, and European regions to reduce reliance on any single market.

  3. Raise Quality Standards: Meet global certifications in labor, environment, and safety to stay competitive.

  4. Invest in Technology: Modernize factories with digital tools to increase productivity.

  5. Strengthen Trade Policies: Provide investors with clear and stable trade frameworks to encourage industrial growth.


Conclusion

Kenya stands at a critical moment. Extending AGOA will protect jobs, attract investments, and keep the country on a growth path. But at the same time, Kenya must use this opportunity to diversify exports, build new trade partnerships, and prepare industries for the future.

For Kenya and its Arab partners, a stronger industrial base means more trade opportunities, better connectivity, and shared economic growth across regions.


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THE JOINT KENYA-ARAB CHAMBER OF COMMERCE AND INDUSTRY

غرفة التجارة والصناعة الكينية العربية المشتركة

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