Why MPs Want Ruto to Extend US Trade Deal for Next 16 Years

The National Assembly has passed a motion calling on the government and the United States (US) to extend the African Growth and Opportunity Act (AGOA) for an additional 16 years, extending its validity to 2041.

The trade pact allows qualifying African nations to export duty-free goods to the US.

Lawmakers on Wednesday, September 23, said the extension would safeguard Kenya’s economic gains, protect livelihoods, and strengthen trade ties with Washington.

AGOA, which came into effect in 2000, was renewed in 2015 for an additional 10 years. The 25-year-old programme is due to expire at the end of September.

If the agreement is not renewed, the lawmakers have urged the US to grant a two-year transition period to allow Kenya to negotiate a trade deal that will safeguard businesses and jobs supported under the pact.

MPs Pass Motion to Extend Kenya-US AGOA Trade Deal by 16 Years

The mover of the motion, Laikipia Woman Representative Jane Kagiri, said AGOA has played a critical role in expanding trade, attracting investment, and creating employment, especially for low-income workers, thus fostering economic growth and social stability

She warned that failure to extend the pact could threaten more than 66,000 direct jobs, with women accounting for approximately 75 percent of the beneficiaries.

“AGOA has significantly boosted African exports to the United States of America, including agricultural products such as coffee, nuts, fruits, and vegetables, amounting to over $500 million in 2020, as well as enhancing local textile and cotton industries that have generated thousands of jobs,” Kagiri said during the debate.

“Women comprise approximately 75 percent of the direct beneficiaries of AGOA, and their incomes directly support education, healthcare, and poverty alleviation.”

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At the same time, Kagiri cautioned that the expiration of the deal could trigger market uncertainty, deter investment, disrupt supply chains, and negatively affect both African and American businesses that rely on AGOA-linked trade.

She added that the duty-free pact has strengthened US supply chain diversification, boosted bilateral trade ties, and connected American businesses to opportunities under the African Continental Free Trade Area.

Lawmakers praised the pact for expanding trade, attracting investment, and creating employment, particularly for low-income workers.

Justice and Legal Affairs Committee Chair George Murugara stated that terminating AGOA would create a vacuum in Kenya’s trade relations with the US, emphasizing the need for bilateral agreements to ensure continuity.

Deputy Majority Leader Owen Baya described AGOA as a “progressive framework” that has allowed Africa to grow its manufacturing base.

On her part, Busia Woman Representative Catherine Omanyo appealed to Washington to “continue being kind and consider an extension,” while Sirisia MP John Waluke urged US President Donald Trump to grant the renewal to avoid disruptions.

Also Read: Kenya, US in High-Level Trade Talks Ahead of Ruto’s Visit

Ruto Eyes US Trade Deal, Seeks Five-Year Extension

The parliamentary motion came shortly after President William Ruto announced that Kenya expects to finalise a trade deal with the US by the end of the year. He also pledged to push Washington to extend its duty-free agreement with Africa for at least five years.

Ruto is scheduled to meet US Secretary of State Marco Rubio later on Wednesday to discuss AGOA, he said in an interview on the sidelines of the annual United Nations General Assembly in New York.

“I will be asking him for the US 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 US 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 said.

He added that he believes the US administration has grown more appreciative of AGOA.

A bipartisan effort to extend the programme last year failed to reach a vote in Congress, and the return of President Donald Trump, with his tariff-focused trade policies, has added uncertainty over its renewal.

Data from the Kenya National Bureau of Statistics (KNBS) show that apparel exports to the US increased from 97.3 million pieces in 2023 to 116 million pieces in 2024, while the value of these exports rose by 19.2 percent to Ksh 60.6 billion.

The number of enterprises under the African Growth and Opportunity Act (Agoa) grew from 39 in 2023 to 40 in 2024, with direct employment increasing by 15.2 percent to 66,800 people and capital investment expanding by 21.1 percent to Ksh 38.3 billion during the same period.

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