Kenya is likely to come under fresh pressure to further open up its economy to US goods, services and investors after US President Donald Trump extended the African Growth and Opportunity Act (AGOA) to December 2026.
The extension, signed late on Tuesday, applies retroactively from September 30, 2025, restoring duty-free access for exporters who lost tariff privileges after the deal briefly lapsed. While the US House of Representatives had initially pushed for a three-year renewal, the Senate trimmed this to a single year, a position later adopted by the House before the Bill was sent to the White House.
US Trade Representative Jamieson Greer said the shorter renewal signals a tougher approach, with Washington seeking more reciprocity and broader access for American businesses. He argued that while AGOA has helped African exports, it has fallen short in delivering meaningful market access for US firms, adding that the programme must now align with President Trump’s America First trade agenda.
The messaging points to a recalibration of trade ties that could see Kenya pushed to lower tariffs, ease regulations and widen entry for US companies if it wants to retain preferential access beyond 2026. US officials are expected to press Nairobi on agricultural imports, services liberalisation and investor access in sectors such as healthcare, finance, energy and digital services.
Washington has repeatedly flagged Kenya’s sanitary, phytosanitary and regulatory standards as barriers, particularly in agriculture. US exporters have complained about restrictions affecting products such as meat, dairy and poultry, as well as hurdles facing exports of bovine embryos and semen, despite prior agreements with US authorities. Corn exports have also been cited as uncompetitive due to Kenya’s stricter aflatoxin and moisture limits, which US officials say exceed domestic standards.
Since 2000, Kenya has exported products such as textiles and macadamia nuts to the US duty- and quota-free under AGOA, supporting tens of thousands of jobs, especially in export processing zones around Athi River and Thika. However, after the agreement lapsed last September, exporters say shipments to the US were hit with full duties of between 15 and 42 percent, squeezing margins more severely than anticipated.
Also Read: Absa Weighs Kenyan Bank Acquisition to Rebuild Retail Market Presence
Business lobby groups Kenya Private Sector Alliance and Kenya Association of Manufacturers welcomed the extension, saying it offers short-term relief and business continuity. KAM estimates that since AGOA took effect, the US has posted a cumulative trade surplus of $1.7 billion, with Kenya exporting $13.3 billion worth of goods while importing $11.6 billion.
KAM chief executive Tobias Alando said AGOA-backed investments currently support about 68,000 direct jobs and nearly 700,000 dependents, but warned that eligibility comes with obligations, including dismantling barriers to US trade and investment and demonstrating progress on market reforms and governance.
Kepsa chief executive Carole Kariuki described AGOA as the most effective US trade policy tool in Africa over the past 25 years, noting that it also benefits American consumers by lowering costs on products such as jeans and uniforms, saving the US an estimated $200–250 million annually.
She said the extension provides immediate certainty for investors and jobs, adding that Kepsa will work with the Kenyan government to advance negotiations on a Kenya–US trade agreement. Both Washington and Nairobi have indicated an intention to revive talks on a comprehensive bilateral free trade deal, which could define the post-AGOA trade relationship.
