The renewal of AGOA(African Growth and Opportunity Act) for another two years by the United States Senate, is a boon for Kenyan exporters, allowing duty-free access into the vast US market for a wide range of its products, particularly textiles.
The move by the Trump administration to renew the AGOA deal, will also benefit 32 other Sub-Saharan African countries, which ship in more than 1,800 products duty free into the US. This import window for eligible African states remains open until December 2028. The current AGOA arrangement was set to lapse at the end of September 2026.
US Senator Raphael Warnock, who lobbied for the AGOA extension, said “it will lower the cost of everyday goods and improve our national security by helping stabilize the economies of our global partners.”
A renewal of the AGOA window places Kenya on the same footing with competitors eyeing the US textiles and apparels market-the likes of Bangladesh, Vietnam, and Egypt.
It is still unclear from diplomatic circles whether Kenya is still on the negotiating table with the Trump administration on a bilateral Free Trade Area(FTA) deal, as an alternative to AGOA.
According to data from Kenya’s 2026 Economic Survey, the Value of Total Exports from Kenya to the US dipped to KSh79,682.1 Million in 2025 from a peak of KSh 88,862.6 Million, the highest figure in 4 years. This is compared to exports worth KSh 162,259.1 Million to Uganda, Kenya’s largest export destination and KSh 166,761.5 Million to the European Union(EU).
Kenya’s exports to AGOA declined in 2025
AGOA is a United States of America (USA) trade initiative designed to enhance exports from accredited Sub‑Saharan African (SSA) countries by granting duty‑ and quota‑free access to the USA market, particularly for products in the apparel and garments sub-sector.
In Kenya, the number of enterprises operating under AGOA increased from 40 in 2024 to 44 in 2025.
Subsequently, employment grew by 22.8% cent to 82,026 persons during the review period. Capital investment by AGOA‑accredited enterprises expanded by 10.4% to KSh42.3 billion in 2025.
In contrast, the value of apparel exports to the USA declined by 4.1%, reaching KSh58.1 billion in 2025.
Despite the decline in export value, the quantity of apparel shipped to the USA from Kenya rose significantly from 116.0 million pieces in 2024 to 148.0 million pieces in 2025.
EXPORT TO THE US FROM KENYA
Overall, Exports from Kenya to the American market recorded a decline of 4.4% to KSh 90.1 billion in 2025. The United States of America (USA), which accounts for the bulk of this region’s earnings reduced by 10.3% to KSh79.7billion, resulting from decreased domestic exports of titanium ores and concentrates; and articles of apparel and clothing accessories, as well as re-exports of kerosene-type jet fuel.
AGOA trade flows
Zones gazetted by the Export Processing Zones Authority increased to 114 in 2025. Employment in EPZA gazetted zones rose by 16.4% to 104,692 persons during the review period. Sales in EPZA zones grew by 4.4% to KSh142.2 billion in 2025 while exports rose to KSh136.8 billion.
Capital investments expanded by 19.7% to KSh204.9 billion during the same period. Local purchases rose by 8.2% to KSh 24.8 billion in 2025. AGOA accredited investments grew by 10.4% to KSh 42.3 billion during the review period.
Apparel exports to the USA, however, declined by 4.1% to KSh58.1 billion in 2025. Exports of EPZ Garments / Apparel from Kenya rose from KSh48,830 million in 2021, KSh54,621 million in 2022, declining to KSh50,817 million in 2023, then to KSh 60,572million in 2024 before falling to KSh 58,076 million in 2025.
During the Biden administration, the US and Kenya officially launched and completed two rounds of negotiations to pursue a free trade agreement, to deal with an unstable AGOA arrangement. But these talks lost momentum as the US went to the polls.
The then US Trade Representative Katherine Tai promised but failed to deliver a plan to review all trade agreements between the US and Kenya. US investments in Africa already face mounting uncertainty and stiff competition especially from China.
The US-Kenya FTA was seen by the US Government and Senate as critical in countering challenge to US dominance and influence in East Africa by China.
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