Good News for Exporters as US Senate Approves AGOA Extension

The Kenyan Government has welcomed the approval by the United States Senate of the extension of the African Growth and Opportunity Act (AGOA). Once fully enacted, the extension will secure duty-free access for eligible exports from Sub-Saharan Africa to the United States until December 31, 2028.
Cabinet Secretary for Investments, Trade and Industry Hon. Lee Kinyanjui welcomed the development, noting that the extension will provide much-needed certainty to Kenyan manufacturers, particularly the apparel sector, which accounts for approximately 70 per cent of Kenya’s exports to the United States. 
In a statement, the CS said the continuation of the third-country fabric provision will allow manufacturers operating within Export Processing Zones to competitively source raw materials, add value locally and export finished garments duty-free.
The apparel sector remains a major contributor to Kenya’s economy. In 2024, apparel exports under AGOA reached KES 60.6 billion, representing a 19 per cent increase from KES 50.8 billion in 2023. The sector also supports more than 66,000 direct jobs.
Beyond apparel, AGOA provides tariff-free market access for premium Kenyan agricultural products, including cut flowers, tea, coffee and macadamia nuts. The extension will support Kenya’s efforts to diversify its export portfolio and increase production across more than 6,000 eligible product lines.
The CS said the Ministry of Investments, Trade and Industry will continue engaging the United States Government to secure mutually beneficial trade and investment terms. MITI, he added, will also work closely with exporters to facilitate applications for refunds of eligible duties paid following AGOA’s expiry on September 30, 2025.
“The Ministry urges Kenyan businesses to increase production, invest boldly and take full advantage of preferential access to the world’s largest consumer market,” the CS said.