African Countries Hold Talks With US, Push for New AGOA Deal Ahead of September Expiry

Treasury PS Kiptoo Chris
Treasury PS Chris Kiptoo during a strategic dialogue on the future of U.S.-Africa economic relations on April 22, 2025.
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Ministry of Treasury

The government on Tuesday signalled its strong interest in renewing the African Growth and Opportunity Act (AGOA) trade agreement with the US, amid rising trade tensions sparked by recent reciprocal tariff orders issued by President Donald Trump.

During the second day of the 2025 IMF/World Bank Spring Meetings in the US, Kenya reaffirmed its commitment to strengthening US-Africa economic ties during a high-level working breakfast hosted by the Corporate Council on Africa (CCA).

With the current AGOA deal set to expire in September this year, the government of Kenya, represented by Treasury Principal Secretary Chris Kiptoo, engaged officials from the US government, including Constance Hamilton, Assistant US Trade Representative for Africa, on how the deal could be renewed. 

During the meeting, the parties, which included representatives from other African nations, explored discussions on how the tariff policies impacted the trade relations between the two nations. 

US President Donald Trump signing an Executive Order in the Oval Office, January 20, 2025
US President Donald Trump signing an Executive Order in the Oval Office, January 20, 2025.
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White House

''An important focus of the meeting was the looming expiration of AGOA in September 2025. Stakeholders emphasised the critical role the Act has played in boosting African exports to the U.S., enhancing job creation, and driving industrial growth across the continent," the Treasury confirmed in a statement. 

''The dialogue emphasised the urgency of crafting a renewed, inclusive, and forward-looking trade framework that supports sustainable economic transformation in Africa.''

AGOA, signed into law on May 18, 2000, by then-US President Bill Clinton, renewed multiple times, with the most recent in 2015, was designed to enhance market access to the US for qualifying sub-Saharan African countries by allowing duty-free exports on thousands of products. 

However, it remains to be seen what the signing of a new pact or the extension of AGOA would mean for the African countries following the reciprocal tariffs imposed by Trump on April 2. 

Meanwhile, on Wednesday, April 9, Trump halted for 90 days his government's reciprocal tariffs imposed on Kenya and other countries except China.

Trump revealed that the new development came about after various consultations between the US and countries affected by the tariffs, such as Kenya. He also highlighted that these countries did not present any opposition to the tariffs. 

During the pause, Trump also announced a reduced reciprocal tariff during this period, which applied to countries that had been hit with tariffs of more than 10 per cent.

''Based on the fact that more than 75 countries have called representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the US, I have authorised a 90-day pause,'' he stated.

In Africa, Lesotho was the highest hit at 50 per cent, followed by Madagascar at 47 per cent, and Mauritius at 40 per cent. Botswana, Angola, Libya, South Africa and Algeria each got 37 per cent, 32  per cent, 31  per cent, 30  per cent, and 30 per cent, respectively.

Trump hit Tunisia with 28 per cent, Côte d'Ivoire and Namibia at 21 per cent each, while Zimbabwe had an 18 per cent tariff imposed on its products.

Zambia and Malawi each received 17 per cent tariffs, Mozambique 16 per cent, Nigeria 14 per cent, Equatorial Guinea and Chad 13 per cent, as the Democratic Republic of Congo and Cameroon got 11 per cent.

The US President imposed a 10 per cent tariff on goods from Egypt, Morocco, Kenya, Ethiopia, and Ghana. Kenya's exports with the US is estimated at around Ksh109.7 billion (784 million USD)

Kenya exports a wide range of goods to the United States under the African Growth and Opportunity Act (AGOA), including textiles and apparel, horticultural products, and agricultural products like macadamia nuts, coffee, and tea. More than half of Kenya's exports to the US are comprised of clothing, macadamia, coffee, titanium ores and concentrates, and black tea. 

Treasury Cabinet Secretary John Mbadi during a meeting with the IMF officials in the US on Monday, Aprl 21, 2025.
Treasury Cabinet Secretary John Mbadi during a meeting with the IMF officials in the US on Monday, April 21, 2025.
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National Treasury and Economic Planning