Kenya’s President William Ruto has delayed signing a proposed trade agreement with China following pressure from the United States (US).
This decision comes as the government balances strategic trade relations between the two countries and ongoing diplomatic considerations.
For Kenya, signing a full trade deal with China might hurt Kenya’s chances of joining the Strategic Trade and Investment Partnership, a US-backed program still taking shape
The agreement, which has not yet been formalised, remains pending approval from the Cabinet, Parliament, and the President.
Sources familiar with the matter told Business Insider Africa that internal consultations are ongoing before the pact can be finalised.
“The finalised text of the ‘Early Harvest’ deal is gathering dust on the Ministry of Trade shelves in Nairobi,” they noted.
The delay coincides with Kenya’s focus on maintaining access to key US trade programs, including the African Growth and Opportunity Act (AGOA).
For 25 years, AGOA has allowed qualifying Kenyan exports, particularly textiles and agricultural products, to enter the US market duty-free.
The US-AGOA Deal
On September 30, 2025, the African Growth and Opportunity Act, which allowed Kenyan goods to enter the United States duty-free for 25 years, expired.
Since its inception, AGOA has been a critical engine for Kenya’s export sector, particularly supporting the textile, apparel, and agricultural industries.
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The program enabled Kenyan manufacturers and farmers to access the US market at competitive rates, boosting foreign exchange earnings, creating jobs, and fostering industrial growth.
The expiration of AGOA has posed significant economic challenges. Many textile and apparel exporters faced increased tariffs, which reduced their competitiveness and threatened supply chains that had grown reliant on duty-free access.
Agricultural exporters, particularly smallholder farmers supplying horticultural products, also risked losing key contracts due to higher costs and reduced market access.
Kenya’s government has been actively engaging with the United States authorities to negotiate a renewal or extension of AGOA benefits.
Kenya-China Trade Deal
Kenya and China negotiated a trade deal, often referred to as the “Early Harvest” agreement, to eliminate Chinese tariffs on key Kenyan exports, including tea, coffee, avocados, and fish.
Also Read: China Wins Big as Trump Lowers Tariffs by 10%, Hints at Beijing Visit
Advanced during President William Ruto’s April 2025 Beijing visit, it aimed to counter Kenya’s Ksh475.6 billion 2025 trade deficit with China and offset AGOA’s lapse, which imposed up to 28% United States tariffs on apparel worth $600 million yearly.
Talks in October 2025 focused on sanitary standards for agriculture. Over 20 related pacts worth billions were signed, covering manufacturing ($320M), agriculture ($430M), and tourism ($230M).
As of January 2026, formalization is stalled pending cabinet, parliamentary, and presidential approval due to U.S. pressure prioritizing AGOA renewal to avert 66,000 job losses.
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