Kenya faces a major threat with the expiry of AGOA this September, and buyers taking advantage of the duty-free access before it ends. The looming expiration could lead to business disruptions and job losses for the over 66,000 workers directly tied to AGOA.
Adding to the problem is a new 10 per cent flat reciprocal tariff on Kenyan imports from the US, which undermines the years of preferential treatment and adds costs for exporters. This change in market access terms puts years of investment in skills and logistics at risk. In response, Kenya has reportedly stepped up its lobbying efforts in Washington to secure a favorable trade deal that could extend or replace AGOA. Without a clear path forward, Kenya’s textile industry and the thousands of livelihoods it supports are at a critical crossroads.
For centuries, Kenyan communities have been making textiles, but in recent decades, the country has transformed into a major force in global apparel manufacturing. This shift was largely driven by the Export Processing Zones Authority (EPZA), which attracted manufacturers with tax breaks and business-friendly policies. As a result, Kenya has seen a significant rise in foreign investment and exports, establishing itself as a key player in the textile industry.
A major reason for this growth was the African Growth and Opportunity Act (AGOA), a US law from 2000 that gave eligible African nations duty-free access to the American market. Kenya became the second-largest exporter of textiles and apparel to the US among all AGOA participants, fueling explosive export growth and job creation, especially for women and young workers.
According to the 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS), employment in AGOA-accredited firms increased by 15.18 per cent in 2024, reaching 66,804 workers, up from 58,002 the previous year. Over 70 per cent of Kenya’s textile and apparel exports go to the US market, highlighting the direct link between trade preferences and job creation.
