As uncertainty mounts after the expiry of the African Growth and Opportunities Act (AGOA) backed by the United States, Kenya and China are set to ink a new trade deal.
In a statement released on Tuesday, October 14, the Trade Ministry revealed that the deal would seek to expand market access in the areas of tea and coffee, which would be severely affected after AGOA’s expiry.
Talks held between government officials and the Chinese Ambassador to Kenya, Guo Haiyan, indicated that the deal would also be aimed at enhancing Sanitary and Phytosanitary (SPS) measures for fish and agricultural products to facilitate smoother trade and ensure compliance with international standards.
“Kenya and China are working on a preliminary trade deal aimed at strengthening trade and investment ties between the two countries,” the Ministry noted.
“The Principal Secretary for Trade, Regina Ombam, met with the Ambassador of the People’s Republic of China to Kenya, Guo Haiyan, for discussions on progress toward the agreement, which seeks to expand market access, especially for Kenya’s key export sectors, such as tea and coffee, and promote greater economic cooperation,” it added.
Despite President William Ruto’s announcement on October 4 that the US had extended the deal by a year, no formal communication has since been issued by trade officials from Kenya or the US.
Ruto made the announcement while speaking at Nyang'ori PAG Church Centenary, where he revealed that the decision to extend the agreement by a year was successful due to his recent trip to the US, where he held talks with Trump's administration over the trade deal.
AGOA is a trade agreement between the United States and Sub-Saharan African Countries. It provides 32 African countries with duty-free access to the US market.
In the agreement, Kenyan exporters have tax-free access to the massive US market, with the textile, tea, and coffee industries being the biggest beneficiaries.
Ruto’s disclosure of the extension of the AGOA deal came barely four days after the trade agreement expired. The 25-year-old deal expired on September 30.
The trade agreement played a crucial role in Kenya's economic development. In 2024, for example, Kenya led Sub-Saharan Africa in apparel exports to the United States, earning $600 million (Ksh77.5 billion) and creating 70,000 direct jobs for Kenyans.
The new trade deal with China continues Kenya’s relationship with the Asian superpower, coming months after Ruto struck deals worth Ksh100 billion spanning across several areas of development in Kenya’s economy.
Through a statement, Ruto revealed the deals in areas such as tourism, manufacturing, and agriculture worth Ksh100.1 billion ($773M) during his five-day official visit in April.
The new deal is expected to cause ripples within the US government, as China is seen as one of America’s biggest competitors in the race to become the world’s biggest superpower.
Previously, Kenya has been criticised by US politicians over its relations with China, with US Senator Jim Risch previously calling for a review of Kenya’s non-NATO ally status.
