U.S. House Approves AGOA Extension to 2028 in Boost for Kenyan Exports
Source: Kenyans.co.ke
The United States House of Representatives has voted to extend the African Growth and Opportunity Act (AGOA) until 2028.
The House approved the extension on Monday, January 12, after 340 House representatives voted in favour of the extension, against 54 who voted against.
Following the approval, the bill will now proceed to the U.S Senate before being signed into law, effectively extending the act that aims to provide duty-free access to the U.S. market for eligible African countries and products.
The AGOA agreement was established in 2000 and was set to expire in September 2025,prompting President William Ruto to call for its extension to facilitate the developmentof more trade deals between Africa and the United States.
While the deal was previously hinted at with a one-year extension, the House approved a bill that allowed a three-year extension to provide market stability until December 31, 2028.
Welcoming the extension, the Foreign Affairs Principal Secretary, Korir Sing'Oei, said the adoption of the AGOA reauthorization bill was a welcomemove for US-Africa trade, commending President Ruto for being at the forefront in calling for the extension. He also said he was looking forward to the Senate's passing of the bill.
President Ruto has been holding bilateral talks with officials in the states, stressing the importance of the extension as a safeguard for thousands of African jobs in sectors like textiles and agriculture.
He had noted that Kenya would be the first African country to sign the deal, which was expected to be authorised in early 2026.
Kenya is among the top beneficiaries of the AGOA deal. In 2024, Kenya reportedly exported approximately Ksh60.7 billion worth of apparel to the U.S.
With the new extension, Ruto identified some areas of planned expansion and growth. He cited apparel and textiles, agricultural products such as coffee and tea, and leather, as well as software, chemicals, and pharmaceuticals. He also proposed extending ICT and digital services.
Reports indicate that the president reportedly delayed signing a trade deal with China, prioritising the stabilisation of the country's access to the U.S. market.
The extension is expected to protect nearly 70,000 jobs in Kenya's export processing zones (EPZs) that were at risk after the September lapse. The extension will also prevent Kenyan exporters from potential tariffs of up to 42 per cent that would have applied in the absence of the agreement.