Kenyan exporters have been given a fresh lease of life after the United States moved to extend a trade programme that has helped keep thousands of workers in jobs and Kenyan goods on American shelves.
The US Senate has approved an extension of the African Growth and Opportunity Act, or AGOA, keeping duty-free access for eligible African exports through December 31, 2028. The programme covers more than 1,800 products from eligible countries.
For Kenya, the decision matters most to the apparel industry. Factories in the country’s Export Processing Zones have depended heavily on AGOA to compete in the US market, where Kenyan garments can enter without the tariffs that apply to many competing imports.
Kenya’s Investments, Trade and Industry Cabinet Secretary, Lee Kinyanjui, welcomed the extension, saying it would give manufacturers greater certainty as they plan production and investment.
“The extension should be viewed not merely as a continuation of existing trade preferences but as an opportunity for Kenyan businesses to deepen their presence in the US market,” Kinyanjui said.
A vital market for Kenyan garments
AGOA was created in 2000 to encourage trade between the United States and eligible sub-Saharan African countries. It has since become an important channel for African exports to the American market.
Kenya’s garment sector has been among its biggest beneficiaries.
According to the Kenya National Bureau of Statistics, exports of apparel and clothing have remained an important source of export earnings, with the sector also recording growth in 2024.
Government figures cited by the Ministry of Investments, Trade and Industry put the number of direct jobs supported by the apparel sector at more than 66,000. Much of that employment is concentrated in EPZ factories.
The extension also preserves the third-country fabric provision. This allows eligible Kenyan manufacturers to source yarn and fabric from countries outside the AGOA bloc, make the garments in Kenya and still qualify for duty-free entry into the US.
That provision has been particularly important for Kenya because many manufacturers rely on imported fabric and other inputs.
Relief after a period of uncertainty
The extension comes after a turbulent period for the programme.
AGOA expired on September 30, 2025, before the United States restored it in February 2026 through the end of that year, with the renewal applied retroactively.
The latest move would take the programme beyond 2026 and provide businesses with a longer planning horizon.
The legislation also provides for refunds of eligible duties paid during the period when AGOA had lapsed. Under the bill, importers can seek refunds through US Customs and Border Protection for qualifying shipments.
For Kenyan exporters, that could mean recovering costs incurred during the gap in preferential treatment.
More time, but no guarantee of growth
The extension is welcome news for manufacturers. But it does not remove the deeper challenges facing Kenya’s export sector.
AGOA gives Kenyan products preferential access. It does not guarantee that American buyers will choose them.
Manufacturers still face pressure over production costs, access to finance, infrastructure and competition from other exporting countries.
There is also a broader question about what happens after 2028.
The US Trade Representative’s office has already been considering how AGOA could be modernised. In April, the agency said any future version should deepen economic ties while also opening more opportunities for US businesses.
That means Kenya cannot afford to treat the extension as a permanent solution.
For the government, the next two years could be an opportunity to attract fresh investment, expand manufacturing and encourage exporters to move beyond garments into higher-value products.
Kinyanjui urged manufacturers to increase production and investment while the preferential access remains in place.
For workers and businesses that depend on the US market, the extension offers something they have lacked for years: time.
The challenge now is to use it well.
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