The AGOA agreement, introduced in 2000 by the United States, was aimed at helping sub-Saharan African countries become part of the global market system. It was initially set for 15 years, but was extended in 2015 for another decade.
President Donald Trump administration’s push for reciprocal trade deals has created anxiety among countries that benefit from AGOA.
As the US African Growth and Opportunity Act (AGOA) is scheduled to expire in September, uncertainty looms over 66,000 jobs in Kenya’s garment and textile export sector.
Despite President William Ruto reassuring businesses in December 2024 that the pact will be renewed, the US administration’s push for reciprocal trade deals has created anxiety among countries that benefit from AGOA.
Despite Kenyan President William Ruto reassuring businesses during a speech in December last year that the agreement will be renewed, the country, a key beneficiary of the trade deal, now faces a tense wait to see if its biggest trade opportunity will survive beyond September, according to domestic media outlets.
According to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS), the number of workers in companies accredited to export under the AGOA pact rose to 66,804 in 2024, a year-on-year (YoY) rise of 15.18 per cent compared to 58,002 in 2023.
The sharp rise in employment followed growing demand for Kenyan apparel ahead of the anticipated end of the duty- and quota-free trade arrangement.
This job growth marked a strong recovery after the sector lost over 8,200 jobs in 2023. Employment had dropped by 12.46 per cent from 66,260 in 2022 due to declining global textile sales triggered by high inflation that reduced household spending.
The 40 firms operating within export processing zones under AGOA also scaled up their capital investments by 21.1 per cent to Sh38.27 billion in 2024.
As a result, earnings from exports jumped by 19.20 per cent to reach Sh60.57 billion in 2024. This was the highest export growth since 2018, when export earnings rose by 25.80 per cent to nearly Sh41.58 billion.
Fibre2Fashion News Desk (DS)
