President William Ruto has convened a high-level meeting with apparel industry stakeholders following the expiry of the African Growth and Opportunity Act (AGOA). The 25-year-old trade agreement, which granted Sub-Saharan African countries duty-free access to the US market, lapsed on September 30, sparking concerns over Kenya’s exports and jobs.
AGOA has been central to Kenya’s economic growth, supporting the creation of more than 50,000 jobs while boosting foreign exchange earnings. Its expiry has raised fears among workers and investors in the textile and apparel sector, with some firms already considering scaling down operations.
During the meeting, President Ruto briefed stakeholders on his recent discussions with US Secretary of State Marco Rubio in Washington, DC. He revealed that talks had centered not only on extending AGOA but also on establishing a long-term trade framework.
“This will go a long way in strengthening our apparel industry, which remains vital to our economy and the livelihoods of thousands of families,” Ruto affirmed.
The Head of State assured industry players that operations would continue uninterrupted as negotiations with Washington advance. His remarks came after several Kenyans voiced concern over potential job losses. A manager from one of the leading apparel companies told the press that the firm was weighing alternative markets due to uncertainties in US market access.
Trade Cabinet Secretary Lee Kinyanjui has also expressed optimism over the renewal of AGOA. Speaking in a recent interview, the CS confirmed that Kenya is actively engaging with the US to secure an agreement that guarantees stability for exporters.
The outcome of the talks will be crucial for Kenya’s apparel industry, which is heavily reliant on AGOA preferences to compete in the global market. For now, Ruto has moved to reassure stakeholders that the government is prioritizing a swift resolution to safeguard jobs and investments in the sector.