Trump Extends AGOA Through 2026 as Kenya Secures Major Trade Lifeline Worth Billions
United States President Donald Trump has signed a proclamation extending the African Growth and Opportunity Act (AGOA), preserving Kenya’s duty-free access to the lucrative American market until December 31, 2026.
The move, signed on May 19, provides a significant boost to Kenya’s export sector at a time of mounting global trade uncertainty and growing concerns over access to Western markets.
The proclamation formally amends Section 506B of the Trade Act of 1974, the key U.S. law governing preferential trade arrangements with foreign nations, ensuring beneficiary sub-Saharan African countries continue enjoying tariff-free treatment under AGOA.
In a statement explaining the legal basis of the extension, the U.S. Embassy noted:
“Duty-free treatment provided under title V of the Trade Act shall remain in effect through December 31, 2026.”
For Kenya, the extension safeguards access for more than 6,500 product lines exported under AGOA, offering relief to manufacturers, exporters, and investors who had feared uncertainty over the programme’s future.
Textiles and apparel remain Kenya’s biggest beneficiaries under the agreement, accounting for more than 90 per cent of the country’s AGOA exports. The sector supports over 80,000 direct jobs in Export Processing Zones (EPZs) located in Nairobi, Mombasa, and Athi River.
One of the most critical provisions retained in the extension is the “third-country fabric rule,” which allows Kenyan factories to import fabric from countries such as China and India, manufacture garments locally, and still qualify for duty-free entry into the United States.
Trade analysts say the clause is essential to the survival of Kenya’s apparel industry, which heavily depends on imported raw materials while employing thousands of workers in export-oriented factories.
Beyond textiles, Kenyan agricultural exporters are also expected to benefit significantly from the extension. Products including coffee, black tea, macadamia nuts, fresh flowers, fruits, and vegetables will continue entering American supermarkets without import duties.
Kenya currently exports between USD730 million and USD830 million worth of goods to the United States annually — equivalent to approximately Ksh94.5 billion to Ksh107.5 billion — making the U.S. one of Nairobi’s most valuable export destinations.
However, despite the continued market access, several Kenyan sectors continue to face hurdles breaking into the American market.
Horticulture, processed foods, floriculture, and meat exports have struggled with strict U.S. sanitary and phytosanitary regulations, including high Food and Drug Administration (FDA) interception rates, pesticide residue limits, quarantine pest concerns, and intensive inspection requirements.
Industry stakeholders argue that these restrictions have made it far harder for Kenyan exporters to compete in the U.S. compared to their European counterparts, who already enjoy established certification systems and supply chains.
Kenyan trade and agricultural officials are currently engaged in negotiations with U.S. counterparts in a bid to streamline certification procedures, particularly in the horticulture sector, amid hopes of unlocking greater export potential.
The proclamation also reinstates Gabon as an AGOA beneficiary country effective January 1, 2026. Gabon had been removed from the programme in December 2023 after failing to meet democratic governance requirements following a military coup.
The AGOA extension is likely to be welcomed by Kenyan exporters and investors who view continued access to the American market as critical for jobs, foreign exchange earnings, and long-term industrial growth.
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