Kenya is positive that Washington will make a decision on its trade relations with Africa before the year ends, even as the country adjusts to the shifting global trade patterns.
White House was last month reported to be mulling over a one-year extension of AGOA which expired on September 30, giving hope to sub-Saharan countries, including Kenya, that have been pushing for continued preferential market access to the US under the pact.
This, even as bilateral trade talks continue, with hopes of sealing a deal by end of this year, which could define how Kenya trades with the US going forward.
The two countries in September took a major step towards a reciprocal trade agreement ahead of AGOA’s expiry, with Kenya pushing for a strategic trade pact.
Speaking in Nairobi during the American Chamber of Commerce (AmCham)’s ‘State of Trade Forum’, Investments, Trade and Industry CS Lee Kinyanjui called for bold and proactive engagement as the country moves beyond the now-expired AGOA.
The CS emphasised that Kenya is optimistic of a positive announcement from Washington before the end of the year but in the meantime, stepping forward to shape a modern trade future with long-term industrial and regional impact remains key.
“Kenya remains the gateway to East Africa and the rest of the continent. We must seize the opportunity to build smarter, more resilient frameworks. This includes deepening Special Economic Zones, attracting investment in sectors like electric vehicles and pharmaceuticals and using lessons from the pandemic to diversify supply chains,” Kinyanjui said.
He noted that lifting the moratorium on power purchase agreements by Kenya signals a policy shift that may end power outages and reduce energy costs, a move set to benefit Kenya’s manufacturing base.
AmCham Kenya board president Angela Ng’ang’a described the current moment not as a gap, but as an opening.
“Global trade is evolving and so must we. Kenya and the US now have a chance to shape a reciprocal, investment driven platform that reflects the realities of a digital, diversified global economy,” she said.
She encouraged stronger US investment in Kenyan textile and agricultural value chains, while reinforcing the private sector’s commitment to policy dialogue and regional trade development.
US–Africa Trade Deal Expert, Gavin van der Burg, stressed that AGOA’s expiry should be seen as a catalyst for co-creation, not retreat.
“AGOA was never meant to be permanent. Now is the time to build a model for the future, one shaped in Nairobi by African talent and American partnership,” he said.
He highlighted the Kenya–US cotton and apparel supply chain, where US cotton is imported, processed locally into garments and exported back to the US.
This model, he argued, should be expanded through contract farming, investment in yarn-to-fabric infrastructure, and logistics upgrades, to strengthen competitiveness and create jobs.
US–Kenya trade data for 2024 shows US exports to Kenya totalled $771 million (Sh99.7 billion), marking a 60 per cent increase from the previous year.
Kenyan exports to the US reached $737 million (Sh99.9 billion), led by $470 million (Sh60.8 billion) in apparel, alongside coffee and cut flowers. The trade balance showed a $34 million (Sh4.4 billion) surplus, reflecting a healthy, mutually beneficial exchange.
Despite AGOA’s expiration, institutional engagement and commercial momentum remain strong with both countries expected to accelerate negotiations on a successor framework that supports trade reciprocity, industrial growth and African innovation, with Kenya leading from the front.
