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The US extends the AGOA trade pact for three years, saving thousands of Kenyan jobs and paving the way for a broader strategic partnership.
The hum of sewing machines in Athi River will continue. The United States Congress has voted to extend the African Growth and Opportunity Act (AGOA) for another three years, a decision that safeguards over 50,000 direct jobs in Kenya’s textile sector.
Trade CS Salim Mvurya termed the extension a "major diplomatic win" for Kenya, which had lobbied intensely for the renewal. The deal allows Kenya to export apparel to the US duty-free, a privilege that generated KES 50 billion in foreign exchange last year. "This gives us the certainty we need to attract new investors," Mvurya noted.
Discussions are now shifting to a comprehensive Strategic Trade and Investment Partnership (STIP) that will eventually replace AGOA. The new pact aims to expand duty-free access to agricultural produce like macadamia and avocados, integrating Kenya more deeply into the US supply chain as Washington seeks to diversify away from China.
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