President William Ruto has announced the extension of the African Growth and Opportunity Act (AGOA), a key trade agreement between Kenya and the United States.
Speaking at Nyang’ori PAG Church in Vihiga County on October 4, the President revealed that he held discussions with American officials to secure the extension during his recent visit to the U.S.
“When I went to the United States, I spoke with its government, and we agreed to extend the AGOA deal for another year,” Ruto stated.
He added that the extension is a major boost to Kenya’s apparel and textile sector, whose key players will now continue enjoying access to the U.S. market.
The AGOA deal, first enacted in 2000, allows eligible sub-Saharan African countries to export certain products to the U.S. without tariffs. For Kenya, it has been instrumental in driving exports, creating jobs, and strengthening trade relations.
Ruto Convenes High-Level Meeting
Ruto, in a statement on Thursday, October 2, reassured stakeholders in the apparel and textile sector of his administration’s commitment to securing a favorable outcome as the AGOA agreement expires.
The meeting was convened to reassure stakeholders in the textile industry about the future of the trade agreement.
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Briefing the industry on his recent meeting with U.S. Secretary of State Marco Rubio, the President assured stakeholders that the government is working closely with the United States to secure both the extension of AGOA and the establishment of a more permanent trade framework.
“I briefed stakeholders on my recent discussions with U.S. Secretary of State Marco Rubio in Washington, where we explored not only the extension of AGOA but also the establishment of a long-term framework to guarantee stable and predictable market access for our products,” read part of the statement.
“This will go a long way in strengthening our apparel industry, which remains vital to our economy and the livelihoods of thousands of families.”
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Mass Firings
Without the extension of the deal, thousands of Kenyans would have lost their jobs.
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.
However, the one-year extension will allow bilateral negotiations for a permanent deal.
The United States is Kenya’s largest source of Foreign Direct Investments (FDI). More than 150 American firms operate in Kenya, spanning IT, food and beverages, financial services, and manufacturing.
In addition, Kenya’s export processing zones (EPZs) have grown steadily under AGOA, hosting dozens of firms that produce garments for U.S. brands.
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