Kenya’s trade ties with the United States could receive a major boost following the U.S. Senate’s approval of a proposal to extend the African Growth and Opportunity Act (AGOA). The Act allows Kenyan products to enter the US market without extra taxes. Since 2000, the programme has helped increase exports, attract investment and create jobs. If approved, the extension would keep AGOA in place until 2028.  

Unlike previous renewals that provided long-term certainty, the current extension would only extend the programme for a short period. This reflects a broader shift in U.S. trade priorities under President Trump’s “America First” agenda, which seeks trade arrangements that deliver more direct benefits to American businesses. As a result, there are ongoing debates about the programme’s future and whether it should be renewed as is or revised.   

The uncertainty surrounding AGOA has already affected Kenyan businesses. The Ministry of Trade has promised to work with U.S. customs authorities to ensure Kenyan exporters are refunded for the additional taxes paid during the programme’s temporary 2025 expiry. The refunds would help businesses recover losses incurred before the programme was renewed in February.  

What AGOA Means for Kenya  

Kenya was the first Sub-Saharan African country to qualify for AGOA benefits and has remained one of the programme’s most successful beneficiaries. Since its enactment, AGOA has played a significant role in Kenya’s economic development by expanding access to the U.S. market and attracting foreign direct investment. Before AGOA, Kenya’s exports to the United States were relatively limited. Since then, exports have grown substantially, particularly in sectors such as apparel, agriculture, and manufactured goods. The programme has also created tens of thousands of jobs, particularly in export-oriented industries, while strengthening Kenya’s position as a regional manufacturing and investment hub.  

Kenya remains eligible for AGOA and continues to maintain strong commercial relations with the United States. Over the past year, total trade in goods and services between the two countries reached approximately US$3.3 billion, an increase of roughly 18% from the previous year. This growth reflects the growing importance of the Kenya-U.S. economic partnership and demonstrates the mutual benefits of open and predictable trade relations.  

Building a Stronger Economic Partnership  

As AGOA approaches another renewal deadline, the focus should be not only on extending the programme but also on strengthening long-term trade relations between Africa and the United States. Rather than relying mainly on aid, both sides should use trade and investment to create jobs, grow businesses and support economic development.  

The economic relationship between Kenya and the United States is already showing strong growth. In 2025, trade in goods between the two countries was worth nearly US$2 billion. American exports to Kenya grew by more than 25 per cent to almost US$1 billion, while Kenya’s exports to the United States increased by about 16 per cent to just under US$900 million.  

These figures show that the programme benefits both countries. While Kenya gains access to one of the world’s largest markets, American businesses also benefit from increased exports, investment opportunities and access to a growing market. This demonstrates that the trade relationship is not a one-way arrangement but a partnership that creates value for both sides.   

The Trump administration has signalled support for a longer-term extension, though it wants future agreements to deliver greater benefits for American businesses. This presents an opportunity for Kenya and other African countries to leverage strong trade results to negotiate a longer-term, more predictable and transparent framework. Greater certainty would encourage businesses to invest, expand production, create jobs and plan for the future with confidence.  

The Way Forward  

As discussions about the programme’s future continue, the focus should shift beyond another short-term extension towards building a stronger, more enduring trade relationship between Africa and the United States.  

A longer-term, improved AGOA would give Kenyan businesses the confidence to invest, expand their operations, and create more jobs. It would also offer American companies greater opportunities to do business in one of the world’s fastest-growing regions.  

Kenya should leverage its strong trade relationship with the United States to demonstrate that the programme benefits both countries. It has helped Kenyan businesses access the U.S. market while creating opportunities for American exporters and investors.  

With a longer-term agreement and increased U.S. investment, Kenya could boost exports, attract more foreign investment, create jobs for young people, and strengthen its position as a leading trade and investment hub in the region.