The White House has announced the extension of the African Growth and Opportunity Act (AGOA) for one year following the scheduled expiry of the program at the end of September 2025.
First enacted in May 2000 under President Bill Clinton, the pact grants eligible Sub-Saharan African countries with duty-free access to the United States market for over 1,800 products. Today, 32 countries including Kenya are beneficiaries under the program which provides export opportunities for locally made products including garments, apparel and other locally made goods. The latest renewal of the program provides Sub-Saharan African exporters continued preferential access to the U.S. market amidst rising tariffs and increased trade barriers.
AGOA’s Legislative Journey
- 2000 – Enacted under President Bill Clinton, set to expire in 2008.
- 2004 – Extended to 2015 through the AGOA Acceleration Act.
- 2015 – Renewed via the AGOA Extension and Enhancement Act, pushing the expiry to 2025.
- 2025 – The Trump Administration has confirmed support for a one-year extension to 2026, marking the program’s third extension.
Kenya’s AGOA Gains
Kenya has been among the biggest beneficiaries of the trade pact. As of 2024, the country had more than 40 enterprises in the EPZ garment and apparel industry, employing more than 66,804 workers. The capital investment stood at KES 38.3 billion (USD 294 million), while exports from the sector totaled KES 60.6B, up 19% year-on-year. Between 2015 and 2024, Kenya’s apparel and garment exports under the pact exceeded KES 447B, highlighting the scale of opportunity the program offers notably in job creation, foreign exchange earnings to the country, and industrial growth.
Risks of AGOA Non-Renewal
According to analysis by the United Nations Conference on Trade and Development (UNCTAD), tariff hikes resulting from the expiry of AGOA would mainly hit apparel, agricultural and food exports and threaten export diversification and industrialization across the continent. Further, UNCTAD notes that non-renewal of the pact would expose at least nine African countries, including Kenya, to an average trade tariff or 20% or higher, which would resultantly impact exports.
Also Read: https://tradingroom.co.ke/williamson-and-kapchorua-oct-13-share-issuance/
