President William Ruto has dispatched a high-level delegation to China to secure new trade agreements amid rising uncertainties surrounding Kenya’s trade ties with the United States, as the fate of the African Growth and Opportunity Act (AGOA) hangs in the balance and fresh US tariffs loom.
This comes after Ruto’s recent visit to Washington, which was overshadowed by President Donald Trump’s stance on foreign aid and international trade partnerships.
Trump’s influence continues to shape the US policy priorities, raising concerns over the future of US-Africa economic ties, particularly as AGOA approaches its 2025 expiration.
Speaking on September 30 at the 76th anniversary celebration of the People’s Republic of China at the Chinese embassy in Nairobi, Prime Cabinet Secretary Musalia Mudavadi stressed the urgent need for Africa to reduce dependency on aid and aggressively pursue strategic trade and investment partnerships.
“The era of relying on foreign aid is over,” Mudavadi declared. “We must seize every opportunity to consolidate trade and investment with partners like China, which is now Africa’s largest bilateral development partner.”
AGOA Expiry and Threat of US Tariffs
With AGOA, the American flagship trade preference program for Sub-Saharan Africa, set to expire this week, Kenya is concerned about the lack of clarity from Washington regarding its renewal.
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The program currently allows Kenya and other African countries to export goods duty-free to the US, but Trump-era policies, with ongoing congressional gridlock, have cast doubt on its future.
Without AGOA, Kenyan exports, including textiles, apparel, and agricultural products, could face steep tariffs, weakening Kenya’s competitiveness in the US market and jeopardizing thousands of jobs in export-oriented industries.
US Supreme Court ruling on September 26 permitted Trump’s administration to freeze $4.9 billion in foreign aid, foreshadowing a more protectionist trade policy in a second Trump term.
Kenya-China Relations
In response to these uncertainties, Kenya is strengthening its economic diplomacy with China.
Mudavadi revealed that a delegation is currently in Beijing negotiating under the Forum on China-Africa Cooperation (FOCAC), aiming to finalize a Free Preferential Trade Agreement (FPTA) with long-term regional benefits.
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“Our delegation in China is actively negotiating within the FOCAC framework to finalize a deal under the Free Preferential Trade Agreement that will benefit Kenya and the broader African region,” he said.
The talks build on the momentum of Ruto’s state visit to China earlier this year, which resulted in the advancement of 21 bilateral agreements.
Key among them is the extension of the Standard Gauge Railway to Kisumu and Malaba, as well as the upgrading of key regional trade arteries.
Mudavadi also explained the importance of multilateralism in a rapidly shifting global order, stating that Kenya values China’s cooperative stance on global development.
“With the current global challenges, weakening multilateralism is dangerous,” he said. “Kenya stands with China to defend and advance a shared future built on cooperation and mutual respect.”
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