The Kenya Association of Manufacturers (KAM) has warned that the expiration of the African Growth and Opportunity Act (AGOA) could deal a significant blow to the country’s export sector, threatening jobs and investments in key industries.
Speaking during the Fixing Nation show on NTV on October 1, KAM Chief Executive Tobias Alando stated that for over two decades, AGOA has provided Kenyan exporters — especially those in the apparel sector — with a competitive edge by offering duty-free access to the U.S. market.
He cautioned that the expiry of AGOA without renewal would strip Kenyan exports of preferential access, making them less competitive against global players.
This, he explained, could significantly reduce export earnings and undermine industrial growth.
“Over 60,000 jobs directly, and another 100,000 indirectly, could be lost if AGOA extension does not happen. The proposed one-year extension allows bilateral negotiations for a permanent deal,” Alando said.
“Without preferential access, our exports, particularly in apparel, textiles, and other key manufactured goods, will lose competitiveness against other global players. This would not only reduce Kenya’s export earnings but also threaten jobs, investments, and industrial growth that rely heavily on the U.S. market.”
Job Losses Loom for Kenya’s Apparel Industry
Alando further noted that Kenya’s apparel industry alone employs more than 58,000 people directly, with an equal number in indirect jobs, while supporting an estimated five dependents for every worker.
Additionally, Alando pointed out that garment production is sourced from China and India, which have already been slapped with tariffs.
This shift altered the dynamics of Kenya’s exports to the US, impacting competitiveness and overall trade flows.
“Some of the raw materials used in garment production are sourced from China and India, which have already been slapped with tariffs,” he said.
“This has affected the competitiveness of our exports to the U.S. and disrupted overall trade flows.”
He urged policymakers to move swiftly to secure Kenya’s place in the US market, stressing that failure to do so would threaten thousands of livelihoods dependent on the apparel and textiles value chain.
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Relief For Kenyans
However, Alando noted that, while the future of AGOA remains uncertain, ongoing discussions in Washington could provide temporary relief.
The White House is reportedly backing a one-year extension of AGOA, which would provide relief to sub-Saharan countries, including Kenya.
“There is a likelihood of a one-year extension of AGOA, which would provide Kenya and other eligible African countries the much-needed window to engage in bilateral negotiations with the U.S. This extension would help safeguard market access, protect jobs, and sustain investor confidence,” he added.
The AGOA Renewal and Improvement Act of 2024, sponsored by U.S. Senators Chris Coons and James Risch, proposes a 16-year extension of the deal until 2041.
The bill aims to sustain Africa’s duty-free access to the US market while attracting private sector investment to boost economic development.
For Kenya, any form of extension would be a lifeline, particularly for Export Processing Zones (EPZs) where thousands of people are directly employed in apparel production.
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How AGOA Affects the Apparel Industry
Kenya has been one of the largest beneficiaries of AGOA since its enactment in May 2000, with textiles and apparel being the primary exports.
In 2024, Kenya emerged as the top exporter of apparel products to the US with shipments valued at more than USD 530 million (Ksh68.4 billion).
A new 10 percent levy on apparel entering the US threatens to undermine the investor confidence and years of export growth achieved under the AGOA framework.
The sector remains a key driver within the East African Community (EAC).
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