More than 66,000 direct jobs in Kenya’s apparel sector are set to remain in focus after the US Senate approved an extension of the African Growth and Opportunity Act (AGOA), according to Kenya’s Ministry of Investments, Trade and Industry.
In a statement on August 13, Lee Kinyanjui, Cabinet Secretary for Investments, Trade and Industry, said the extension of AGOA will provide continued duty-free access to the US market for eligible Kenyan exports through December 31, 2028.
“Once successfully approved, the Act will secure duty-free access for eligible Sub-Saharan African exports to the United States market through December 31, 2028,” the statement read in part.
The Kenyan government said the extension is significant for the country’s economy because it provides greater predictability for manufacturers exporting to the United States.
AGOA Keeps Kenya’s Apparel Sector in Focus
Kenya’s apparel industry is among the major beneficiaries of AGOA. According to the Ministry, apparel accounts for about 70% of Kenya’s total exports to the United States. The sector has also recorded strong export performance.
Data cited from the 2025 Kenya National Bureau of Statistics Economic Survey shows that Kenya’s apparel exports under AGOA reached KSh60.6 billion in 2024. The ministry confirmed that this represented a 19% increase from the KSh50.8 billion recorded in 2023.
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The government said the apparel sector supported by AGOA directly employs more than 66,000 people in Kenya. Continued access to the US market is therefore expected to provide predictability for businesses operating in the sector.
Additionaly, the ministry stated that the extension also retains the third-country fabric provision, which is important to Kenya’s apparel industry.
Under the provision, companies operating in Kenya’s Export Processing Zones can source raw materials such as yarn and fabric from countries that are not part of AGOA. They can then add value through local manufacturing before exporting finished garments to the US duty-free.
“The extension ensures that the factories, equipment, and training invested in these EPZs continue to yield returns rather than remain idle,” the ministry stated.
Duty-Free Exports Through 2028
The government said AGOA provides Kenyan enterprises with continued access to the US market without tariff barriers across thousands of eligible product lines.
Beyond apparel, Kenya continues to use the trade arrangement to support agricultural exports. Products benefiting from access to the US market include cut flowers, tea, coffee and macadamia nuts.
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The extension is also expected to support investments already made in Kenya’s Export Processing Zones. The government said continued market access will help ensure that factories, equipment and worker training continue generating economic returns.
Lee further welcomed a provision allowing retroactive refunds of eligible duties paid by exporters during the gap between the previous AGOA expiry on September 30, 2025, and the enactment of the new legislation.
Additionally, the government said it will work with exporters to facilitate requests to the US Customs and Border Protection for eligible refunds, which are to be processed within the mandated 90-day period.
The Ministry of Investments, Trade and Industry said it will continue engaging the US government on trade and investment matters while supporting Kenyan exporters to take advantage of the renewed preferential access to the US market.
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