Kenya is facing mounting pressure to secure the renewal of the African Growth and Opportunity Act (AGOA) before it expires on September 30, 2025, as both African and American stakeholders warn of potential economic fallout.
- •Since its launch in 2000, AGOA has allowed Kenya to export roughly $600 million annually to the U.S., with the apparel sector alone employing over 58,000 people directly and supporting an estimated 580,000 dependents.
- •Failure to renew the agreement could trigger factory closures, massive job losses, and disruptions across supply chains linking Kenya to the U.S. market.
- •The American Apparel & Footwear Association (AAFA) has urged Congress to renew AGOA alongside Haiti’s HOPE and HELP programs, which similarly support U.S. and Haitian textile industries through duty-free access.
“AGOA is not just a trade framework; it is a symbol of economic partnership and a testament to what is possible when nations work together,” said Pankaj Bedi, Apparels Manufacturers and Exporters (EPZ) Sector Chair and a Board Member of Kenya Association of Manufacturers emphasizing the stakes for Kenyan exporters and U.S. businesses alike.
In addition to the textile sector, agro-commodity exports under AGOA sustain thousands more livelihoods.
“These programs safeguard and support our 3.6 million American workers while sustaining jobs in Sub-Saharan Africa and Haiti,” said AAFA Vice President of Trade and Customs Policy Beth Hughes.
AAFA President and CEO Steve Lamar added: “The programs are not only good for American companies, American workers, and the U.S. economy, they ensure America remains influential in key regions of the world. Allowing these programs to lapse means ceding power and influence to others.”
In April, Trump imposed a 10% blanket tariff on Kenyan goods as part of his global tariff regime. The new tariffs essentially overrode the prospects AGOA will be renewed as the Trump administration favours country-by-country trade deals over blanket regional ones.