The Kenya Association of Manufacturers has urged Nairobi and Washington to fast-track a bilateral trade agreement following the 16-month extension of the African Growth and Opportunity Act. KAM CEO Tobias Alando highlighted the need for a sustainable framework to secure market access for Kenyan exporters. This push comes as Kenya reaps major benefits from duty-free entry to the US market.
The Kenya Association of Manufacturers has called on the governments of Kenya and the United States to accelerate a long-term bilateral trade agreement in the wake of the 16-month extension of the African Growth and Opportunity Act. KAM Chief Executive Tobias Alando stated that this extension offers a vital opportunity for both nations to complete talks on a bilateral pact ensuring predictability for exporters, manufacturers, and investors. “This is the time to lock in our progress,” Alando said in a statement. “We urge both governments to use this momentum to conclude a long-term trade agreement that ensures continued access to the U.S. market and deepens economic cooperation.” Enacted in 2000, AGOA provides duty-free access to the US market for thousands of products from eligible African countries, with Kenya as a major beneficiary, exporting Ksh126 billion worth to the US in 2025 while importing goods valued at Ksh149 billion. Over the past 20 years, bilateral trade has brought significant economic gains, with US exports to Kenya totaling Ksh2.1 trillion and Kenyan exports to the US reaching Ksh1.8 trillion. KAM noted that AGOA has generated jobs for around 68,000 Kenyans, indirectly supporting nearly 700,000 dependents in sectors like textiles, apparel, and agriculture. However, Alando cautioned that dependence on periodic renewals creates uncertainty for exporters, and a bilateral deal would secure these benefits and foster growth beyond AGOA's timelines. He added that such a pact could broaden market access for Kenyan products, aid industrial diversification, and promote green and value-added exports to the US. Alando commended President William Ruto’s administration for progressing discussions with the United States and reaffirmed KAM's commitment to collaborating with both governments and the private sector to bolster trade relations. The extension, effective for 16 months, will expire on December 31, 2026, retroactive from September 30, 2025, when the program originally lapsed. Kenya is also advancing a separate bilateral trade deal with the US to protect long-term market access beyond AGOA, emphasizing mineral processing and technology for future economic stability.
