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Kenya Eyes Landmark US Trade Deal as AGOA Expiry Looms

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Kenya Eyes Landmark US Trade Deal as AGOA Expiry Looms

Kenya is racing to finalize a new trade agreement with the United States before the African Growth and Opportunity Act (AGOA) expires in September 2025. The preferential deal currently allows Kenya to export thousands of products duty-free to the U.S., sustaining nearly 300,000 jobs in the textile and apparel sector.

Last year, Kenya exported goods worth $737 million to the U.S., accounting for 10% of its total exports. The potential lapse of AGOA without a successor framework has heightened concerns among policymakers and industry players about the future of Kenya’s access to the lucrative American market.

Negotiations with Washington
Trade Minister Lee Kinyanjui told Reuters that discussions with U.S. officials have accelerated in recent months. He revealed that Kenya is pushing for a deal that mirrors AGOA’s favorable terms, ensuring smooth continuity for exporters. “It depends also on them (the Americans), but our view is that before the end of the year, we should be able to have something on the table,” Kinyanjui said.

The urgency has been amplified by the 10% tariff imposed earlier this year by U.S. President Donald Trump, raising doubts about AGOA’s automatic renewal. Talks were first launched in 2020 and revived under the Biden administration, but now face renewed pressure under Trump’s second term.

Kinyanjui warned that without a clear transition plan, the expiry of AGOA could significantly disrupt Kenya’s textile industry. Still, he expressed optimism that competitive tariffs and ongoing talks could turn Kenya into a hub for multinational investment.

Ruto’s Mission in New York
President William Ruto left Nairobi on September 20 for the United Nations General Assembly (UNGA) in New York. It is his first U.S. visit since Trump returned to office in January 2025.

During the UNGA, Ruto is expected to reaffirm Kenya’s commitment to multilateralism and call for reforms of the global financial system to secure fairer development financing for poorer nations. He will also participate in the Committee of Ten (C-10) Summit to advance Africa’s case for UN Security Council reforms and co-host a high-level side event on Haiti to address peace and security challenges.

Beyond diplomacy, Ruto’s agenda includes a High-Level Breakfast on Affordable Housing with more than 30 heads of state, bilateral talks with world leaders, and meetings with global industry executives to attract investment in agriculture, infrastructure, energy, and technology.

As Chair of the African Union’s Climate Change Committee (CAHOSCC), Ruto will also spearhead Africa’s unified stance ahead of COP30 in Brazil. In addition, he is expected to meet executives from major tech companies—Facebook, Google, and YouTube—to expand Kenya’s digital economy. Key priorities include integrating M-Pesa into Facebook’s payment system and lobbying Google to allow M-Pesa for ad purchases.

Ruto will also engage the Recording Academy to accelerate plans for world-class recording studios in Nairobi and potentially host the first African edition of the Grammy Awards.

The Road Ahead
The success of these negotiations and Ruto’s U.S. engagements could reshape Kenya’s trade and investment landscape. Securing a post-AGOA trade deal with Washington would not only safeguard thousands of jobs but also cement Kenya’s role as a strategic trade and investment hub in Africa.

In other news:Kenya Shines in Tokyo, Bags 7 Golds to Finish Second at World Athletics Championships

Kenya Eyes Landmark US Trade Deal as AGOA Expiry Looms

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