Kenyan exporters have received a major boost after the United States Senate approved an extension of the African Growth and Opportunity Act (AGOA), preserving duty-free access for eligible African products entering the US market.
The extension runs through December 31, 2028, giving Kenyan businesses greater certainty as they plan production, investment and exports to the American market.
The decision is particularly important for Kenya’s apparel industry, which remains one of the country’s biggest beneficiaries of AGOA.
Apparel industry among biggest beneficiaries
Kenya’s apparel exports to the United States were worth about KSh60.6 billion in 2024, according to data cited in the report.
The sector directly supports tens of thousands of jobs, particularly in companies operating within Export Processing Zones (EPZs). The continued AGOA arrangement allows Kenyan manufacturers to export qualifying garments to the US without the tariffs that would otherwise apply.
The agreement is also important because of the third-country fabric provision, which allows Kenyan manufacturers to source certain textile inputs from countries outside AGOA before processing and exporting finished products to the United States.
This provision has been critical to the competitiveness of Kenya’s garment manufacturing industry.
Agriculture also stands to benefit
The impact of AGOA goes beyond clothing.
Kenyan agricultural exporters also rely on preferential access to the American market for products such as flowers, tea, coffee and macadamia nuts.
Keeping these products competitive in the US market could help exporters maintain existing customers while creating room for increased production and investment.
Exporters could recover duties paid during the gap
Another significant aspect of the new legislation is its treatment of the period when AGOA’s previous authorisation had lapsed.
The programme expired on September 30, 2025, leaving exporters facing normal tariffs during the gap before its renewal.
The new legislation provides for eligible exporters to seek refunds for duties paid during that period, potentially giving Kenyan businesses an opportunity to recover money already paid at the US border.
A boost for Kenya-US trade
The AGOA extension comes as Kenya and the United States are also working on a broader reciprocal trade framework.
The two countries held their first round of consultations in February 2026, covering areas including goods, agriculture, services, digital trade, investment and tariffs.
US government data shows that bilateral goods trade between Kenya and the United States reached an estimated $1.8 billion in 2025, highlighting the importance of the American market to Kenyan exporters.
For Kenya, the latest AGOA decision therefore provides more than temporary relief. It gives exporters additional time to expand production, attract investment and prepare for the longer-term future of Kenya-US trade.
With the extension now running until the end of 2028, businesses have a clearer window in which to plan and strengthen their position in one of the world’s largest consumer markets.
