US Senate Extends AGOA Trade Deal Supporting 66,000 Kenyan Jobs

The United States Senate has approved an extension of the Africa Growth and Opportunities Act. The decision maintains duty-free access for eligible Sub-Saharan African goods entering the US market until 31 December 2028.

Kenya’s Ministry of Investments, Trade and Industry described the development as highly significant for the country’s export economy. Cabinet Secretary Lee Kinyanjui signed a press statement on the matter on 13 August 2026.

Kenya’s apparel sector stands as the single largest beneficiary of the trade arrangement. It accounts for 70 percent of the country’s total exports to the United States.

According to the 2025 Kenya National Bureau of Statistics Economic Survey, apparel exports under AGOA reached KSh 60.6 billion in 2024. That figure represented a 19 percent increase from KSh 50.8 billion the previous year.

The sector directly supports over 66,000 jobs, largely within Export Processing Zones. Manufacturers source raw materials such as yarns and fabrics from non-AGOA countries, process them locally and export the finished garments under preferential terms.

The extension preserves the third-country fabric provision that makes this supply chain model viable. Beyond textiles, the Act also provides tariff-free access for Kenyan agricultural products including cut flowers, tea, coffee and macadamia nuts.

A significant aspect of the renewed legislation is a provision for retroactive duty refunds. AGOA’s previous authorisation lapsed on 30 September 2025, creating a gap period during which Kenyan exporters continued shipping goods but were subject to standard tariffs.

Under the new bill, those exporters are eligible to reclaim duties paid during that window. Kinyanjui said the Ministry will work closely with exporters to support the filing of refund requests with the US Customs and Border Protection. Eligible refunds are to be processed within a mandated 90-day period.

The Cabinet Secretary urged Kenya’s private sector to accelerate production and take full advantage of the preferential market access. The Ministry added that it would continue engaging with the US Government to secure broader bilateral trade and investment terms.

More than 6,000 product lines remain eligible under AGOA. The extension provides continuity for manufacturers and exporters who rely on the arrangement for competitiveness in the US market.

The apparel industry’s concentration in Export Processing Zones links the trade decision directly to Kenya’s industrial and manufacturing base. Job preservation in these zones forms a central element of the Ministry’s response.

Officials indicated that the private sector should move quickly to capitalise on the renewed access. The combination of duty-free entry and the refund provision addresses both future shipments and the interim gap period.