Kenya is among several African countries set to benefit after U.S. President Donald Trump’s administration signalled support for extending the African Growth and Opportunity Act (AGOA), which is set to expire this week, by one year.
According to Reuters, a senior White House official disclosed that Trump will endorse the extension, despite his silence on the pact since taking office in January.
AGOA, first passed in 2000 to provide duty-free access to the U.S. market for thousands of products, is a key bilateral trade pact for Kenya and other African nations, with over 66,000 jobs directly dependent on it.
The extension is expected to breathe new life into the decades-old trade pact that is set to expire on Tuesday, with attention now fixed on President Trump, who has championed the America First policy since taking office.
His administration has slapped several countries with trade tariffs, with Kenya among those affected by a 10 per cent levy.
However, according to Bloomberg, the chances of renewing the Clinton-era program before its expiry remain slim, as it has been strained by Trump’s unilateral tariffs on African nations, ranging from 10 to 30 per cent.
African governments and investors have been lobbying in recent weeks for a one- or two-year extension after efforts to secure a longer-term renewal did not make it to a vote in the U.S. Congress.
President William Ruto, while on the recent U.S. trip on the sidelines of the United Nations General Assembly (UNGA), announced that Kenya will sign a new bilateral trade agreement with the United States by the end of the year.
This will offer a safety net over the uncertain state of the AGOA, and will be the first deal of its kind between the Trump administration and an African state.
However, Ruto told the media that the country is still lobbying for a five-year extension of the duty-free agreement between the U.S. and Africa.
"I will be asking him for the U.S. to consider seriously renewing and extending AGOA for at least a minimum of five years, because it is a platform that connects Africa and the U.S. in a very fundamental way, and it can go a long way in solving some of the trade deficits and challenges that exist at the moment," Ruto stated.
On September 24, the National Assembly called for the expedited extension of the AGOA, citing its immense contribution to Kenya’s economy and livelihoods.
In a Motion sponsored by Jane Kagiri (Laikipia) and supported across the political divide, with lawmakers emphasising the importance of AGOA in boosting exports, creating employment, and sustaining social development.
