U.S. Senate Hands Kenya Jobs Sector Major Boost After Approving Key Deal

Jukwaa

🇰🇪 Breaking It Down

The extension, which still requires approval by the U.S. House of Representatives and assent by President Donald Trump, would allow eligible sub-Saharan African countries to continue exporting qualifying goods to the US without tariffs until December 31, 2028.

The Senate approved the extension by 90 votes to six, offering relief to African exporters who had faced uncertainty over the future of the trade programme.

AGOA has been a key pillar of U.S.-Africa trade relations since it was enacted in 2000, providing eligible African countries with preferential access to the U.S. market for thousands of products.

📌 What You Need to Know

Kenya’s apparel exports under AGOA reached Ksh60.6 billion (about $470 million) in 2024, up from Ksh50.8 billion (about $393 million) in 2023, according to the 2025 Kenya National Bureau of Statistics Economic Survey.

The sector currently supports more than 66,000 direct jobs in Kenya , with the government saying the extension will help protect investments made in factories, equipment and worker training in the EPZs.

The Ministry of Trade, through CS Lee Kinyanjui, on Thursday, August 13, said the extension would provide greater certainty for local manufacturers, particularly those in the apparel sector.

“Once successfully approved, the Act will secure duty-free access for eligible Sub-Saharan African exports to the United States market through December 31, 2028,” Cabinet Secretary Lee Kinyanjui said.

The CS said apparel accounts for about 70 per cent of Kenya’s total exports to the US, making the continuation of AGOA particularly important for the country’s garment industry.

The extension also retains the third-country fabric provision, allowing firms in Kenya’s Export Processing Zones to source yarns and fabrics from non-AGOA countries, manufacture the products locally and export them to the US duty-free.

📰 Source: Kenyans.co.ke

0 0