Kenya’s economic lifeline may soon be cut. The African Growth and Opportunity Act AGOA is set to expire on September 30, ending a key duty-free trade arrangement with the US.

Nairobi

Kenya's economy is at risk as the African Growth and Opportunity Act (AGOA), a key trade agreement with the United States, nears its expiration. The agreement has enabled duty-free exports, supporting 66,000 apparel jobs and benefiting nearly 660,000 Kenyans who depend on the sector. 

With the potential loss of AGOA, Kenya could lose its competitive advantage in the global apparel market to countries like Bangladesh, Vietnam, and Egypt. The Kenyan Trade Minister is actively seeking an extension in Washington, while experts highlight the need for a long-term solution such as a Kenya-U.S. free trade agreement and greater economic diversification.

66,000 Kenyans to lose jobs if AGOA not renewed

Kenya's economic lifeline may soon be cut. The African Growth and Opportunity Act is set to expire on September 30th, ending a key duty-free trade agreement with the U.S. The deal has been a game-changer, anchoring billions of shillings in investment, sustaining 66,000 apparel jobs and supporting nearly 660,000 Kenyans who rely on the apparel sector for their livelihoods. Without the Act, Kenya loses its competitive edge against Bangladesh, Vietnam and Egypt, sending its Trade Minister to Washington to fight for an extension. But time is scarce, and active, sustained diplomacy is crucial. If the AGOA isn't renewed, Kenya may pivot fast. A Kenya-U.S. free trade agreement could offer the predictability investors crave and secure Kenya's foothold in global supply chains. Beyond textiles, experts say Kenya's future lies in diversification.

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