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Despite AGOA extension, why is Kenya not celebrating just yet?

09 Mar '26
3 min read
Despite AGOA extension, why is Kenya not celebrating just yet?
Pic: Shutterstock

Insights

  • The reauthorisation of AGOA, signed by US President Donald Trump through December 2026, has shielded more than 66,000 Kenyan textile jobs and prevented steep tariffs.
  • However, with AGOA's deadline approaching again in 2026, industry leaders are pushing for a durable bilateral trade pact to avoid recurring uncertainty and protect investment, jobs, and export stability.

For Kenya, the arrangement has been transformative. More than ** per cent of its exports to the US are apparel, much of it stitched in Export Processing Zones (EPZs) and destined for renowned brands such as Calvin Klein, H&M, Tommy Hilfiger, etc.

However, in recent months, uncertainty cast a long shadow over the factory floors from Nairobi to Mombasa. As questions swirled over whether AGOA would be renewed, investors began to pull back. Media reports spoke of scaled-down operations, frozen hiring and workers shifted to short-term contracts.

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