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Kenya’s slow delivery affects Agoa exports to US market

Kenya's incapability to deliver orders has been responsible for the country’s inability to fully benefit from the apparel industry's duty-free access to the US market. Jas Bedi, Head, Kenya's Export Promotion Council, says it takes an average of 135 days to deliver goods to US buyers from the time an order is placed in Kenya.

Kenya’s total exports to the US under the Agoa peaked at Sh35.2 billion in 2015. The 75 days it takes for fabric from Asia to reach manufacturers in Kenya accounts for most of the delivery lag of finished products to the US. The varieties of fabrics needed to keep pace with the rapidly changing demand are not available to Kenyan factories in a timely manner.

Shortening supply chain would enable Kenyan manufacturers to reap greater gains through the US preferential trade program Agoa. As per US trade agency, 40,000 Kenyans currently hold Agoa-related jobs. Kenya ranks among the top supplier of apparel to the US, having exported $340 million worth goods to the US last year. Agoa is set to expire in 2025 and US officials have warned that duty-free exports from Africa are unlikely to continue after that date.

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Members of the US Congress are signaling they probably will not extend Agoa's envisioned 25-year lifespan.

 
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