Relief for Companies as Kenya, U.S. Near New 5-Year Trade Deal

Kenyan workers in textiles and apparel have been dealt a boost after President William Ruto announced the country will sign a new bilateral trade agreement with the United States by the end of the year.
This will offer a safety net over the uncertain state of the Africa Growth and Opportunity Act (AGOA), and will be the first deal of its kind between the Trump administration and an African state. However, Ruto toldReutersthat the country is still lobbying for a five-year extension of the duty-free agreement between the U.S. and Africa.
While speaking in an interview with the American publication on the sidelines of the ongoing United Nations General Assembly (UNGA) on Wednesday, Ruto expressed optimism that Kenya will finalise a trade agreement with Washington by December.
The announcement comes amid high-level talks to salvage the 25-year-old AGOA, which grants qualifying African nations duty-free access to the U.S. market and is due to expire this month. If it expires without a successor deal, more than 66,000 people risk losing their jobs, with Kenya among the nations that could bear the brunt.
“I will be asking him for the U.S. to consider seriously renewing and extending AGOA for at least a minimum of five years, because it is a platform that connects Africa and the U.S. in a very fundamental way, and it can go a long way in solving some of the trade deficits and challenges that exist at the moment,” Ruto toldReuters.
Meanwhile, an attempt to secure further extension last year did not go well after failing to get a vote at the U.S. Congress.
Additionally, President Donald Trump’s firm stance on U.S. strategic relations, which led to the implementation ofkey tariff-driven trade policies with Kenya among the nations affected, has further cast doubt on the possibility of an extension.
At home, the National Assembly has called for the expedited extension of the AGOA, citing its immense contribution to Kenya’s economy and livelihoods.
In a Motion sponsored by Jane Kagiri (Laikipia) and supported across the political divide, with lawmakers emphasising the importance of AGOA in boosting exports, creating employment, and sustaining social development.
Kagiri raised concerns that the current extension of AGOA granted in 2015 is set to expire in September 2025, warning of potential economic disruptions if urgent measures are not taken.
”Women comprise approximately 75 per cent of the direct beneficiaries of AGOA, and their incomes directly support education, healthcare, and poverty alleviation,” she stated.
Following deliberations on the floor of the House, the Members of the National Assembly approved the motion on the Extension of the pact. Additionally,they agreed that in the case of non-renewal, there would be a transition period of two (2) years to develop a trade deal that would safeguard the businesses and job opportunities in both Kenya and the United States of America.
”This House urges the Government of Kenya, in collaboration with the Government of the United States of America, to pursue an extension of the African Growth and Opportunity Act (AGOA) for an additional sixteen (16) years, until 2041, to safeguard the economic gains, protect livelihoods, and promote long-term stability and prosperity across the African continent and in the alternative, in the case of non-renewal, there be a transition period of two (2) years to develop a trade deal that shall safeguard the businesses and job opportunities in both Kenya and the United States of America,” read part of the resolutions.