Kenya Pushes for US Trade Deal as AGOA Expiration Looms


Kenya Pushes for US Trade Deal as AGOA Expiration Looms
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  • Kenya targets bilateral US trade pact by year-end.
  • AGOA expiry risks 300K textile jobs, $737M in exports.

Kenya is negotiating a bilateral trade deal with the United States as the African Growth and Opportunity Act (AGOA) nears expiration at the end of September 2025, threatening $737 million in exports and 300,000 jobs. AGOA, which provides duty-free access for eligible African exports to the U.S., has been a cornerstone of Kenya’s economic success, particularly in the textile and apparel sectors.

According to Cryptopolitan on September 19, 2025, Kenyan leaders aim to finalize the new trade agreement before year-end to safeguard critical industries against tariff barriers and potential job losses. Factories producing goods for major U.S. retailers heavily rely on AGOA’s privileges, and its expiration presents a pressing economic challenge for Kenya’s export competitiveness.

Bilateral trade negotiations between Kenya and the U.S. commenced in August 2025, following Kenyan Trade Minister Lee Kinyanjui’s meeting with United States Trade Representative Jamieson Greer in Washington. If successful, Kenya would become the first sub-Saharan African nation to secure a reciprocal trade agreement with the U.S., aiming to replicate AGOA’s benefits while ensuring longer-term economic security.

Kenya has also actively lobbied for AGOA’s extension to postpone economic disruptions. Cryptopolitan reported that AGOA currently covers products from 32 African countries, enabling duty-free access to the U.S. market. Kenyan officials remain optimistic about retaining trade privileges while simultaneously advancing bilateral negotiations.

Economic pressures have added urgency to the talks. A 10% tariff was imposed on certain Kenyan goods, further emphasizing the need for a replacement framework. Progress has been slow under the Biden administration's “Strategic Trade and Investment Partnership” initiative, which follows earlier stalled negotiations initiated during the Trump administration.

Geopolitical dynamics have also influenced the discussions, with Kenya’s expanding trade relationship with China drawing scrutiny from U.S. officials. Kenyan President William Ruto has emphasized the importance of maintaining balanced trade partnerships while addressing concerns related to engagements with China.

As of September 19, 2025, Bitcoin (BTC) was trading at $26,749, reflecting a 0.9% increase in 24-hour trading volume, as reported by CoinMarketCap. Ethereum (ETH) was priced at $1,719 with no significant change (-0.4%) in trading volume during the same period.

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Article Info
Category
Policy
Published
2025-09-19 17:14
NFT ID
PENDING
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