Kenya has welcomed the recent three-year extension of the African Growth and Opportunity Act (AGOA), which will now run until 31 December 2028. AGOA, a U.S. trade preference programme launched in 2000, grants duty- and quota-free access to the American market for thousands of products from sub-Saharan African countries, including Kenya. This extension comes as significant relief for Kenyan exporters, who faced considerable uncertainty when the programme briefly lapsed in 2025, exposing them to tariffs ranging from 10% to 42% on key exports such as textiles and apparel. Restoring duty-free access immediately boosts Kenya’s competitiveness against global rivals, particularly Asian exporters, and secures the country’s position in the U.S. market.

The benefits of this extension go beyond tariff relief. It safeguards thousands of jobs across Kenya’s export ecosystem, including logistics, agriculture, and manufacturing. This stability also strengthens investor confidence, enabling businesses to plan for the long term, invest in new machinery, and expand operations without fear of sudden market disruptions. Additionally, the United States has introduced a refund mechanism for Kenyan exporters who paid tariffs during AGOA’s lapse, easing financial strain and helping to restore confidence in the trade relationship.

AGOA’s renewal also creates opportunities for export diversification. While Kenya’s exports have traditionally focused on apparel, tea, coffee, and macadamia nuts, the extended timeline provides scope to expand into sectors such as leather goods, pharmaceuticals, horticulture, and digital products. This aligns with Kenya’s broader strategy to move up the value chain and reduce reliance on raw commodity exports. Furthermore, the extension strengthens U.S.–Kenya economic ties and complements ongoing discussions on a more comprehensive trade framework that could deliver even greater benefits in the future.

In conclusion, the AGOA extension is a critical lifeline for Kenyan exporters, restoring duty-free access, protecting jobs, and providing a stable platform for growth and diversification. It not only stabilizes the export sector but also positions Kenya to leverage this opportunity to advance industrialisation and deepen its integration into global markets.