President William Ruto has assured Kenya’s apparel industry that the government is working urgently to secure the future of the sector as the African Growth and Opportunity Act (AGOA) faces expiry.
AGOA, a US law passed in 2000, allows duty-free access for goods from Sub-Saharan Africa into the American market. Kenya’s apparel sector has been its biggest winner, exporting garments worth $600 million in 2024 alone and providing jobs for 70,000 workers. Many more Kenyans earn a living indirectly through cotton farming, transport, and logistics.
Ruto met representatives of the apparel industry in Nairobi to calm fears over the looming expiry of the pact. He said the government is in close talks with Washington to extend AGOA and create a long-term trade framework that will guarantee predictable market access for Kenyan exports.
“I briefed stakeholders on my recent discussions with US Secretary of State Marco Rubio in Washington, where we explored not only the extension of AGOA but also the establishment of a long-term framework,” Ruto said.
Adding;
“This will go a long way in strengthening our apparel industry, which remains vital to our economy and the livelihoods of thousands of families.”
The president promised that manufacturers and workers will not face disruptions as the two countries negotiate.
“In the meantime, I assured them that operations in the industry will continue without disruption as talks with the US Government proceed with the urgency they deserve,” he said.
Kenya is the leading exporter of apparel to the US from Sub-Saharan Africa, thanks to AGOA. The law has helped the country’s export processing zones (EPZs) expand steadily, attracting dozens of firms that supply US brands.
Industry leaders warn that without a quick deal, the country risks losing its hard-won market share, investment, and thousands of jobs. Many factory owners fear they may be forced to cut production or relocate if the preferential trade terms lapse.
Ruto said his administration is determined to avoid such an outcome and will fight to keep the US market open for Kenyan goods.
Possible renewal
Ruto’s assurance comes days after the US signalled it may extend the AGOA for one more year.
The White House is now backing a one-year extension as Washington and Nairobi continue trade talks. This is the first clear position the US administration has taken on AGOA, and it has bipartisan support in Congress, raising hopes for a quick renewal.
Kenya’s apparel sector employs approximately 66,000 people directly and supports over 660,000 others. In 2024, the country exported $470 million (Ksh 60.7 billion) worth of apparel to the US.
Business groups, including the Kenya Association of Manufacturers, the Kenya Private Sector Alliance (Kepsa), and the American Chamber of Commerce, have been lobbying hard for renewal.
They say even a short extension will safeguard jobs, keep investor confidence, and strengthen US-Kenya trade ties.
AGOA, which expired on September 30, has for over two decades allowed Kenya and other sub-Saharan countries to export goods to the US duty-free. It has been key to keeping Kenya’s apparel industry alive and protecting thousands of jobs.
