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Trade pact renewed to Dec 2026, saving Sh95bn export market.
The ink is dry, and the sighs of relief in Nairobi’s industrial zones are audible. In a decisive move that averts an economic catastrophe, US President Donald Trump has signed a one-year extension of the African Growth and Opportunity Act (AGOA), keeping the door to the American market open for Kenyan goods until December 31, 2026.
For Kenya’s export sector, this is not just policy; it is survival. The uncertainty following the expiry of the previous pact in September 2025 had frozen orders and left factories teetering on the brink of closure. The renewal, which applies retroactively, reinstates duty-free access for over 6,000 product lines, saving an industry that pumps Sh95 billion annually into the Kenyan economy.
While the extension is a victory for Kenyan diplomacy, it is a short-term fix. The "one-year" timeline serves as a ticking clock. The Trump administration has made it clear that the era of "trade charity" is ending. The extension is a bridge, not a destination. Kenya must now race to negotiate a reciprocal Free Trade Agreement (FTA) before the 2026 deadline expires.
"This restores predictability," says a leading textile manufacturer in Athi River. "But we are living year-to-year. We need a permanent deal." The textile and apparel sector alone employs tens of thousands of Kenyans, primarily women, whose livelihoods hang on these Washington signatures.
The renewal comes with strings attached. Trump’s "America First" policy demands that beneficiaries of AGOA demonstrate alignment with US interests. Kenya, positioning itself as America’s anchor state in East Africa, has managed to navigate this geopolitical minefield.
As the containers start moving again at the Port of Mombasa, the celebration is muted. Kenya has bought time, but the structural vulnerability remains. The next 11 months will be a diplomatic sprint. The Sh95 billion question remains: Can Kenya secure its economic future before the clock strikes midnight on New Year’s Eve 2026?
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