Kenya inches closer to sealing long drawn US trade negotiations

Kenya and the United States have taken a step closer to signing a reciprocal trade pact as the African Growth and Opportunity Act (AGOA) nears its expiry.

The new deal is expected to redefine trade relations between the two nations at a time when Kenya faces new trade tariffs imposed by Washington.

The latest developments come against the backdrop of a 10 per cent tariff imposed on Kenyan exports by US President Donald Trump in April, a move that has added urgency to Kenya’s push for more predictable trade terms with its largest export market outside Africa.

On Tuesday, Trade Cabinet Secretary Lee Kinyanjui led a high-level delegation to Washington, D.C., for talks with United States Trade Representative (USTR) Ambassador Jamieson Greer, with the meeting emerging as an important step toward securing a formal trade pact, according to the government.

According to Kinyanjui, the discussions were built on earlier engagements he held with Ambassador Greer in March 2025 and a separate round of talks held by Prime Cabinet Secretary Musalia Mudavadi in May.

He stressed Kenya’s strong commitment to finalising a deal that will be mutually beneficial to both countries.

“Kenya is deeply interested in the commencement of formal negotiations with the United States Government. A reciprocal trade agreement is crucial for securing long-term access to the US market for Kenyan products and will provide the stability needed to unlock new investments,” Kinyanjui said.

He further revealed that several American firms had already expressed interest in establishing or expanding their presence in Kenya, adding that a structured framework would give them the confidence to move forward with their plans.

On his part, Greer welcomed the delegation’s push, noting that the US was focused on building a stronger, more balanced trading partnership with Kenya, which he described as a key state for American interests in Africa.

“We applaud Kenya's focus on strengthening trade with the United States. Let’s build a partnership that leverages the growth of the manufacturing sector in America while providing a market for Kenyan products that cannot be sourced locally,” he said.

Government data shows that Kenya’s trade with the United States stood at $1.5 billion (Sh194 billion) in 2024.

Should a new agreement be reached, it is expected to create fresh opportunities for Kenyan exporters and attract new investments from American companies, with President Trump having spared Kenya in the last round of tariffs imposed late last month.

According to the CS, both the US and Kenya concluded the meeting with a firm commitment to begin the process of negotiating the reciprocal trade deal, which could eventually replace or improve upon the preferential AGOA framework of which Kenya, together with other African nations, is a part.

The AGOA plan is expected to expire next month. 

Kenya has been chasing a trade pact with the US since July 2022 when it announced its intention to negotiate a Strategic Trade and Investment Partnership (STIP) with the U.S. government, a high-standard agreement to boost investment, sustainable growth, and regional integration.

The STIP process, which aims to replace the previous FTA talks launched in 2020, focused on areas like agriculture, digital trade, supporting SMEs, and promoting women and youth in trade.