The Kenya Association of Manufacturers (KAM) has welcomed the recent 16-month extension of the African Growth and Opportunity Act (AGOA), which comes after President Donald Trump signed a law extending the preferential trade program for Africa through December 31, 2026 effective retroactively from September 30, 2025.
This extension ensures that Kenyan exports continue to receive preferential access to the vast U.S. market, providing a critical lifeline for local businesses and safeguarding jobs. In fact, the renewal reaffirms a longstanding partnership that has fostered mutual economic growth between Kenya and the United States for over two decades.
Since its inception in 2000, AGOA has been beneficial for both Africa and the U.S. For Kenya, the United States stands as one of its most vital trading partners, accounting for roughly 9% of its external market. In 2025 alone, Kenyan exports to the U.S. reached Sh101.69 billion ($788.6 million) against imports of Sh120.03 billion ($930.8 million).
Historically, the cumulative exchange has seen a U.S. trade surplus. Since the start of the act, America has exported Sh1.72 trillion ($13.3 billion) worth of goods to Kenya and imported Sh1.49 trillion ($11.6 billion), indicating a substantial commercial relationship.
However, the real impact of AGOA is measured in human terms as the initiative is credited with driving socio-economic growth by supporting approximately 68,000 jobs, which in turn sustain nearly 700,000 dependents in Kenya.
These benefits extend across Sub-Saharan Africa, acting as a catalyst for development. The framework has encouraged significant economic progress, spurred job creation, generated vital foreign exchange, and contributed to poverty reduction. Importantly, it has also promoted the integration of sound governance, the rule of law, and political pluralism within member nations.
While the extension is set to support Kenya and other African countries, it is contingent upon countries meeting stringent eligibility criteria, including upholding a market-based economy, respecting due process, and enacting policies that combat corruption and protect human rights. This conditional aspect links trade directly to progressive reforms.
KAM states that this move acts as a bridge to a more permanent solution. It is urging both the current administration and the U.S. Government to conclude negotiations for a comprehensive Kenya-US bilateral trade agreement. As such, a pact would build upon the gains of AGOA, providing a long-term and sustainable framework that can weather the uncertainties of periodic renewals.
Also, the association acknowledges the role of the government in advancing these critical discussions and reaffirms its own central role in advocating for the private sector’s interests.
In fact, according to Tobias Alando, Chief Executive of KAM, the goal is sustained collaboration that ensures countries continue to reap shared rewards, not only through AGOA but within an ever-broadening bilateral cooperation.
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