Kenya and US Advance Reciprocal Trade Talks as AGOA Nears Expiry

Washington, D.C., USA – Kenya and the United States have taken a significant step toward finalising a reciprocal trade agreement. A high-level Kenyan delegation, led by Trade Cabinet Secretary Lee Kinyanjui, held formal negotiations in Washington as the African Growth and Opportunity Act (AGOA) approaches its scheduled expiry on September 30, 2025. 

Background & Immediate Response

• On August 20, 2025, CS Kinyanjui led the delegation to meet with U.S. Trade Representative Ambassador Jamieson Greer, building on earlier discussions held in March and May this year. 

• The delegation also engaged the U.S. Chamber of Commerce, reflecting growing U.S. business interest in Kenya. 

Purpose of Talks: AGOA Replacement

• Kenya urgently seeks a reciprocal trade agreement to ensure long-term, predictable access to U.S. markets once AGOA expires. 

• Without AGOA’s duty-free provisions, a 10% tariff will be reimposed on Kenyan exports to the U.S. 

Trade Data & Strategic Positioning

• Kenya’s exports to the U.S. under AGOA were approximately $737 million in 2024. 

• Trade between both nations—including services—totaled around $3.3 billion in 2024. 

• U.S. tariffs against competitors like Vietnam and Sri Lanka are significantly higher. Kenya’s relatively lower 10% tariff could offer a competitive edge—if domestic cost challenges are addressed. 

Historical Context & Existing Frameworks

• Negotiations for a Free Trade Agreement (FTA) began under President Trump in 2020 and were shelved under Biden’s administration, which instead launched the Strategic Trade and Investment Partnership (STIP) in 2022. 

• STIP focused on reducing non-tariff barriers rather than addressing tariffs directly. A comprehensive FTA would offer broader tariff relief. 

Economic Implications

• AGOA has created around 66,000 jobs in Kenya since 2000, with significant impact in the textile and apparel sector. 

• Its expiry could disrupt employment and production, especially in garment-exporting industries. 

• Kenya aims to leverage newly revived talks to secure a durable agreement, maintaining export competitiveness and investor confidence. 

Summary Table