To thrive in this unpredictable landscape, Kenya must diversify its trade partnerships
by TIMOTHY KAMAU | Star-blogs | 25 March 2025
In Summary
- The African Growth and Opportunity Act (AGOA), set to expire on September 30, 2025, has been a linchpin of Kenya’s trade relationship with the United States, fueling growth in its apparel sector and supporting thousands of jobs.
- However, Trump’s “America First” trade policies, which favour bilateral deals over multilateral frameworks like AGOA, cast doubt on the program’s renewal.
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The potential expiration of AGOA looms large. Ethiopia’s removal from the program in 2022, following human rights concerns, led to factory closures and mass job losses—a stark warning for Kenya.
Even without political missteps, the mere uncertainty of AGOA’s future is already deterring investment.
A 2023 U.S. Fashion Industry Association survey revealed that 60% of respondents hesitated to commit long-term to African markets due to AGOA’s temporary status.
For Kenya, this chilling effect could stall growth in an industry that employs thousands and generates critical foreign exchange.