Trade CS Kinyanjui hopeful of US extending AGOA pact

Speaking during an interview on Citizen TV, Kinyanjui stated that Kenya has actively engaged US authorities to safeguard its interests ahead of the expiry of the current extension. 

AGOA was signed into law in 2000 by then US President Bill Clinton to promote trade and economic growth in Sub-Saharan Africa.

The deal provides eligible African countries with duty-free access to the vast US market, covering over 6,000 product lines. 

Kenya, one of the biggest beneficiaries, has particularly leveraged the apparel and textile sector, which has created thousands of jobs in Export Processing Zones (EPZs) and generated billions in export revenue.

“AGOA is a tariff-free entry into the US market for African countries. For whatever you produce here, you will be able to get it into the US market without having to pay anything and with no restrictions on volume. This program has benefited Kenya immensely. We were on an extension and that extension is coming to an end,” Kinyanjui stated. 

“In the last four months, we have had about four delegations to the US, including last week presided over by the president with high-ranking officials. The indication now is that a renewal is highly possible. They are seven hours behind us and the announcement should be done by today. The Kenyan government has engaged the US authorities and we believe we will have a positive outcome."

While the period of the next extension is yet to be confirmed, the CS pointed out that a longer duration would give Kenya time to adapt and maximize opportunities. 

“I’ve heard one or two (years of extension) but the announcement will come from them. The longer the better to allow us to adapt. The trade balance between other countries and the US, Kenya is in a good place,” he said.

The CS also pointed to global uncertainty as a reminder of the need for self-reliance. He noted that the decision by the US government would determine the future of one of Kenya’s most important trade frameworks. 

“We are in a turbulent position in the world. The sequence of order and predictability that we had a few years ago is no longer there. In a disorderly situation, the government has done quite a lot," he noted. 

"We must look for ways of ensuring there is local demand. We would need to look for mechanisms to ensure that Kenyans wear more clothes that are made in Kenya so that we can secure jobs. Kenya is in a very good place."