Kenya is working to finalize a trade agreement with the United States before the end of the year, Trade Cabinet Secretary Lee Kinyanjui has said. The deal would be the first of its kind between Washington and a sub-Saharan African country.
Kinyanjui told Reuters that Nairobi hopes to conclude the negotiations quickly, though progress will also depend on U.S. officials. The urgency stems from the looming expiry of the Africa Growth Opportunities Act (AGOA) at the end of September.
AGOA currently allows Kenya and 31 other African countries to export thousands of products duty-free to the U.S. In 2024, Kenya exported goods worth $737 million to the American market, around 10% of its total exports. The country’s textiles and apparel industry employing about 300,000 people depends heavily on AGOA to sell to retailers like Walmart and Target.
The uncertainty around AGOA’s renewal and the 10% tariffs imposed under Donald Trump have increased pressure to secure a new deal. Kenya wants the agreement to mirror AGOA’s favorable terms while also attracting new investments.
“We believe we still can be competitive,” Kinyanjui said, pointing out that Kenya’s lower tariffs compared to countries such as Vietnam and South Africa could make it an appealing production hub for global companies.
Although the U.S. has recently expressed concern about Kenya’s closer ties with China, President William Ruto has defended the relationship, saying it is aimed at reducing the trade imbalance with Beijing. Despite this, Washington still regards Nairobi as a key ally, naming Kenya a major non-NATO ally in 2024.
If a deal is not reached and AGOA ends abruptly, thousands of Kenyan jobs could be at risk. For now, both governments face mounting pressure to deliver a framework that protects trade and strengthens economic ties.
