US extends AGOA pact for three years
The United States has passed a bill to extend the African Growth and Opportunity Act (AGOA) for a further three years, posing a critical growth for U.S-Africa trade relations.
In a statement on Wednesday, Trade Cabinet Secretary (CS) Lee Kinyanjui noted that the move will pave the way for renewed confidence and expansion of national trade and increase exports.
“We aim to grow exports of additional products under the AGOA framework beyond textiles, ensuring that Kenya fully leverages this opportunity to create jobs and generate wealth,” CS Kinyanjui noted.
He cited an example of the textile and apparel industries, operating within the Export Processing Zones (EPZs), which he said employ over 80,000 people directly and an additional 250,000 indirectly
CS Kinyanjui added that Kenya is also discussing a bilateral trade agreement that will cover other key sectors and further cement Kenya’s long-standing partnership with the US.
Kenya’s major exports to the U.S. include textiles and apparel, coffee, tea, horticultural products, and tourism services. Expanding our export basket remains a key priority and aligns with our broader strategic economic agenda.
AGOA was signed into law in the year 2000 by then US President Bill Clinton to promote trade and economic growth in Sub-Saharan Africa.
The deal provides eligible African countries with duty-free access to the vast US market, covering over 6,000 product lines.
Kenya,one of the biggest beneficiaries, has particularly leveraged the apparel and textile sector, which has created thousands of jobs in Export Processing Zones (EPZs) and generated billions in export revenue.
