Apparels exported to the United States (US) market under the Africa Growth and opportunity Act (AGOA) earned Kenya KSh 60.6 billion last year, a 19.2% jump from KSh 50.8 billion in 2023, according to the KNBS Economic Survey 2025.
- •The survey indicates that Kenya’s volume of apparel exported to the US market under the duty-free program increased from 97.3 million pieces in 2023 to 116.0 million pieces in 2024.
- •After the US Congress enacted the AGOA Trade Act in May 2000, the pact has been renewed several times, most recently in 2015, when it was extended to September 2025.
- •The number of enterprises under the program in Kenya rose by 1 to 40 in 2024, and direct employment grew by 15.2% to 66,800 people.
Additionally, capital investment expanded by 21.1% to KSh 38.3 billion in 2024, continuing a positive path it has been on since 2020.
Since its implementation, AGOA has provided Kenya and other eligible sub-Saharan African countries with duty-free access to the US market for over 1,800 products.
However, trade decisions by the Trump administration, including the imposition of a universal 10% tariff on Kenya and many countries, threaten the future of AGOA just months to when it is due for renewal. AGOA has been a cornerstone of Kenya’s export strategy to the US, allowing duty-free access for a wide range of products, particularly textile products.
The Trump administration has shown a preference for country by country deals in place of blanket ones like AGOA, and discussed a free trade agreement with Kenya during Trump’s first term.
Meanwhile, total sales from Export Processing Zones (EPZs) grew by 21.7% to KSh 136.2 billion in 2024, mainly driven by strong demand in export markets. Additionally, domestic sales increased by 6.2% to KSh 6.8 billion in 2024.
“Direct employment of locals increased by 18.9 per cent to 89.9 thousand persons in 2024. This expansion was primarily driven by the increased number of EPZ firms across various sectors, particularly in apparel and agro-processing enterprises. However, employment of expatriates declined by 3.6 per cent from 785 persons in 2023 to 757 persons in 2024,” KNBS says in the survey.
As of December 2024, there were 105 EPZs in the country, with three more added in the year. 96 of these are privately owned, while 9 are publicly owned. Mombasa has the largest share at 28 followed by Kilifi with 17 and Kwale with 9. Nairobi City, Machakos and Kiambu counties each have 7 Zones, whereas Nakuru and Murang’a have 4 each.
