Mass job losses loom as curtains drawn on Agoa pact

Kenyan workers prepare men’s underwear at Hela Intimates Export Processing Zone factory in Athi River, Machakos./FILE

Kenya is staring at a second wave of mass job losses due to the US government’s decision to end the African Growth and Opportunity Act.

Three weeks from today, over 66,000 Kenyans employed in the apparel industry alone would not be assured of their jobs if a last-minute decision is not made to extend Agoa, which expires on September 30.

With a one-to-one ratio of indirect jobs and supporting an estimated five dependents per worker, it means that about 660,000 Kenyans rely on apparel exports to the US under Agoa for their livelihoods, a number that will be affected if the Export Processing Zones and related businesses decide to downsize, according to the Kenya Association of Manufacturers.