The United States has extended the African Growth and Opportunity Act (AGOA), granting duty‑free access for eligible sub‑Saharan African exports to the American market.
While the renewal provides relief to exporters, the one‑year extension—shorter than the three years initially passed by Congress—has left businesses grappling with uncertainty over long‑term trade prospects.
Short Extension, Long Shadows
AGOA, first enacted in 2000, has been a cornerstone of Africa–US trade, covering sectors such as fuel, agriculture, apparel, and automotive manufacturing. Its expiry in September 2025 had placed hundreds of thousands of jobs at risk, particularly in textiles and agribusiness. The International Trade Centre estimated that a lapse could have cut projected exports by $189 million by 2029, with apparel and textiles accounting for $138 million of that decline.
The Senate’s decision to amend the renewal to a one‑year extension before sending it to President Trump’s desk disappointed exporters who had hoped for longer certainty.
US Push for Market Access
US Trade Representative Jamieson Greer framed the extension as a chance to recalibrate the program:
“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers to build upon the benefits it has historically provided to Africa and the United States,” he said.
Greer added that the administration would work with Congress to modernise AGOA in line with President Trump’s America First Trade Policy, signalling tougher reciprocity requirements for African markets.
Kenya’s Private Sector Response
For Kenya, the renewal is a critical reprieve. The Kenya Private Sector Alliance (KEPSA) welcomed the signing into law, noting its retroactive effect to September 2025 ensures continuity for exporters.
“The signing of this act provides the immediate certainty required to maintain investor confidence and protect existing jobs,” said Carole Kariuki, KEPSA CEO. She added that KEPSA would immediately embark on Kenya–US trade deal negotiations, aligning with both countries’ economic policies.
The extension secures livelihoods for over 66,000 Kenyan workers in apparel, textiles, and agribusiness, supporting nearly 800,000 dependents. In 2024, Kenya exported $470 million worth of apparel to the US under AGOA, underscoring its importance as “the single most effective US policy tool in Africa over the last 25 years,” according to KEPSA.
Advocacy and Diplomacy
The renewal follows coordinated lobbying by KEPSA, the Kenyan government, and regional partners. High‑level engagements at the 80th UN General Assembly in New York included investor roundtables and the Kenya–US Investment Forum, advancing bilateral trade and investment ties. President William Ruto’s administration continued diplomatic efforts until the formal signing.
The Kenya Association of Manufacturers (KAM) also welcomed the extension, stressing its role in sustaining business continuity. KAM Chief Executive Tobias Alando urged both governments to conclude negotiations for a bilateral trade agreement, noting that AGOA has supported 68,000 jobs in Kenya and remains vital for socio‑economic growth.
Balancing Benefits and Risks
For the US, AGOA has delivered consumer savings of $200–250 million annually on products like jeans and uniforms, while promoting stability in sub‑Saharan Africa. Yet Washington’s trade deficit with the continent has widened, and the administration is keen to rebalance terms.
The extension highlights both opportunity and risk: African exporters retain preferential access, but face mounting pressure to open their markets further. As Greer noted, the next year will be used to “modernise the program to align with America First Trade Policy.”
Outlook
Kenya exported $788.6 million to the US in 2025, compared to imports of $930.8 million, making America one of its most important trading partners. With AGOA extended through December 2026, exporters gain short‑term certainty, but the looming renegotiation underscores the need for a long‑term bilateral framework to secure sustainable trade relations.
