BUSINESS

Ruto Secures Last-Minute AGOA Extension, Promises Long-Term US Trade Deal

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President William Ruto at a past event
President William Ruto at a past event
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Kenyan workers in the textile and apparel sector can breathe a sigh of relief after President William Ruto announced that the United States has granted Kenya a one-year extension to the African Growth and Opportunity Act (AGOA).

Speaking at the Nyang’ori PAG Church Centenary in Vihiga County on Saturday, October 4, Ruto said the breakthrough came during his recent visit to Washington.

“Na ndio mliona juzi, nikiwa kule Marekani. Nimeongea na serikali ya Marekani, na sasa wametupatia extension ya ile soko ya AGOA, na sasa kwa the next one year, we will continue to export into their American market,” the Head of State told the congregation.

The announcement came as a huge relief to exporters and tens of thousands of workers in the textile industry who had been staring at an uncertain future after the 25-year-old trade pact expired on September 30.

AGOA allows 32 Sub-Saharan African countries to export goods to the US duty-free. Kenya has been one of its biggest beneficiaries, earning a record Ksh 60.57 billion from textile exports to the US in 2024, up 19.2 per cent from Ksh 50.82 billion the previous year.

According to the Kenya National Bureau of Statistics, exports rose from 97.3 million pieces in 2023 to 116 million pieces in 2024, sustaining more than 66,800 jobs.

Ruto said his government is not settling for just the one-year reprieve. He revealed that Nairobi is already in talks with Washington for a bilateral trade agreement that would secure long-term access to the American market for Kenyan goods.

“Na vile vile tunaongea na wao ili tuakikishe ya kwamba kuna bilateral trade agreement kati ya Kenya na Marekani. Ndio tuweze kutumia soko ya Marekani kuinua kilimo ya taifa letu la Kenya na kupata soko ya mahali ambapo tunaweza kuuza kahawa yetu, chai, mambo ya horticulture, textiles na apparels na zile vitu zingine zote ambazo tunauza katika soko hiyo,” Ruto said.

The president linked the push for better trade terms to his wider plan to fight hunger, create jobs, and boost agricultural productivity.

“Haya tunayoyafanya ni kwa sababu tunataka kuondoa aibu ya njaa katika taifa letu la Kenya. And we want to use agriculture to grow jobs, or to create jobs, and have products for export,” he explained.

This comes days after Ruto met with key stakeholders from Kenya’s apparel sector to reassure them of the government’s commitment.

He briefed them on his talks with US Secretary of State Marco Rubio, which focused on both the AGOA extension and the establishment of a permanent trade framework.

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.

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