State welcomes US Senate's approval of Agoa extension up to December 2028

The government has welcomed the United States Senate's approval of the extension of the Africa Growth and Opportunities Act (Agoa) for two years and four months.

The green light follows President Donald Trump's signing of a one-year extension of the Agoa on February 3, 2026, after its expiry on September 30, 2025.

It will now allow duty-free access for eligible Sub-Saharan African exports to the United States market through December 31, 2028.

“This extension will be a highly significant development for Kenya’s economy as well as the eligible countries in Sub-Saharan Africa, in providing predictability for our manufacturers,” said the Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui in a statement to newsrooms.

“For Kenya in particular, the apparel sector constitutes 70 per cent of Kenya’s total exports to the United States. The provision for the continuation of the third-country fabric provision protects our booming apparel sector.”

Kinyanjui said this crucial rule allows firms within Kenya’s Export Processing Zones (EPZs) to competitively source raw materials, such as yarns and fabrics, from non-Agoa countries, add substantial value through local manufacturing, and export the finished garments duty-free.

“The Act’s provision for retroactive duty refunds is highly encouraging. Exporters who shipped goods to the US during the gap between the programmes' previous expiration on September 30, 2025, and the enactment of this Bill will not face financial penalties,” said Kinyanjui.

The CS said his ministry will work closely with exporters to facilitate the filing of requests with US Customs and Border Protection (CBP) to ensure all eligible duties paid during this window are refunded within the mandated 90 days.

He said the US remains one of Kenya's key strategic partners, adding that the extension of the trade pact guarantees Kenyan enterprises continued exports of thousands of product lines to the US without the burden of tariff barriers.

“Kenya has consistently utilised the opportunities presented by Agoa, using it as a catalyst for industrialisation and job creation," said Kinyanjui.

According to the CS, the country’s latest economic data underscores the vitality of this trade pact with textiles and apparel, making Kenya the largest beneficiary of Agoa in the garment sector, with over 70 per cent of its total textile and apparel exports destined for the US market.

According to the 2025 Kenya National Bureau of Statistics (KNBS) Economic Survey,  Kenya’s apparel exports under Agoa reached Sh60.6 billion (about $470 million) in 2024, representing a 19 per cent growth from the Sh50.8 billion recorded in 2023.

He observed that the apparel sector under Agoa supports over 66,000 direct jobs in Kenya and generated about Sh60.6 billion (around $470 million) in 2024 alone.

“The extension ensures that the factories, equipment, and training invested in these EPZs continue to yield returns rather than remain idle,” he said.

Beyond apparel, Kinyanjui said Agoa continues to boost Kenya’s agricultural exports  by providing tariff-free access to the US market for premium Kenyan products such as cut flowers, tea, coffee and macadamia nuts.

“The renewed trade predictability through to 2028 aligns perfectly with Kenya’s commitment to supporting local manufacturers to increase their production capacity and diversify Kenya’s export portfolio under the over 6,000 eligible product lines,” he said.

The CS said his ministry will continue to actively engage the US government to secure mutually beneficial bilateral trade and investment terms.

 “We will support all exporters in capitalising on this renewed opportunity. We urge the Kenyan private sector to accelerate production, invest boldly, and

take full advantage of this preferential market access to the world's largest consumer market,” said Kinyanjui.