The value of exports of apparels to the US market under the African Growth and Opportunity Act (AGOA) declined by almost Ksh6 billion last year, impacting on direct jobs supported by the programme.
- African Growth and Opportunity Act (AGOA), which is an initiative of the United States of America (USA), has its main goal as increasing exports especially of apparels from accredited Sub-Saharan African (SSA) countries.
- The agreement expires next year with African governments seeking its extension beyond 2025.
- In an analysis by the Kenya Bureau of Standards (KNBS), the value of apparel exports to US market decreased from KSh 56.7 billion in 2022 to KSh 50.8 billion in 2023.
The direct employment under AGOA reduced to 58.0 thousand persons in 2023 compared to 66.3 thousand persons recorded in 2022.
However, the capital investment of projects under AGOA, increased by 16.7 per cent to KSh 29.2 billion in 2023 from 25.1 billion in 2022.
In 2019, the number of employees under the programme stood at 49,489 but was down to 45,588 in 2020 before rising to 50,422 in 2021. The number of employees under the Agoa programme stood at 66,260 in 2022.
As indicated by KNBS in the 2024 Economic Survey, the value of exports under the Agoa arrangement declined to KSh 50,802 billion last year.
Total sales from Export Processing Zones decreased to KSh 111.4 billion in 2023 from KSh 116.3 billion in 2022, as value of exports reduced by 1.5 per cent to KSh 105.0 billion in 2023. The decrease was mainly due to reduced orders for some garments and agro processing enterprises.
Domestic sales from Export Processing Zones, which include sales to duty free shops, decreased from KSh 9.7 billion in 2022 to KSh 6.4 billion in 2023.
The number of gazetted Export Processing Zones as at end of December 2023 stood at 101 compared to 89 in 2022. The zones which were privately owned and operated were 91 while 10 were public.
Seven zones were located in the Nairobi City County, 27 in Mombasa, 16 in Kilifi, 8 in Kwale 7 in Machakos, 6 in Kiambu, 4 in Nakuru,3 each in Muranga, Bomet and Embu 2 in Kisumu, Kirinyaga, Nandi, Uasin Gishu, and Meru, one each in Kajiado, Elgeyo Marakwet, Laikipia, Narok, Kitui, Busia and Homabay.
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