Kenya is racing to conclude a landmark trade agreement with the United States before the end of the year, according to Trade Cabinet Secretary Lee Kinyanjui. The deal is expected to unlock new opportunities for Kenyan businesses while deepening economic ties with one of the world’s largest economies.
Trade between the two countries has been steadily growing. In 2024, total goods trade stood at about US$1.5 billion, with Kenya exporting US$737 million worth of goods to the United States. A significant portion of these exports came from apparel under the African Growth and Opportunity Act (AGOA), which generated KSh 60.6 billion (US$470 million) in 2024 an impressive 19.2 percent rise from the previous year. The textile and apparel industry, a major employer in Kenya, has been one of the biggest beneficiaries of AGOA, making continued access to the U.S. market critical for job creation and economic stability.
However, AGOA is set to expire in September 2025. Established in 2000, the U.S. legislation grants duty-free access to more than 6,500 products from eligible Sub-Saharan African countries. While 35 countries currently benefit, Kenya is the only one actively pursuing a stand-alone bilateral trade pact with Washington to cushion its exporters from uncertainties that may arise once AGOA lapses.
Beyond textiles, Kenya’s horticulture sector ,one of its top foreign exchange earners saw exports fall to US$1.06 billion in 2024 from US$1.21 billion the previous year. The decline was attributed to high shipping costs and disruptions in global trade routes. By finalizing a bilateral agreement, Kenya hopes to stabilize earnings in this sector, secure better access to the U.S. market, and build resilience against global shocks.
If concluded, the deal would provide long-term certainty for exporters, safeguarding industries that employ thousands of Kenyans. It also promises to attract greater U.S. investment into the country, thanks to clearer rules on trade and investment protection. American firms are more likely to set up operations in Nairobi and beyond, creating jobs, facilitating technology transfer, and fostering innovation. The information technology and renewable energy sectors are seen as major beneficiaries of such cooperation.
Small and medium-sized enterprises (SMEs) are also poised to gain. With improved access to the U.S. market, local entrepreneurs could scale their businesses, adopt higher production standards, and reach international consumers, translating into stronger incomes and household resilience.
Trade experts argue that the pact would also boost Kenya’s regional standing. By striking a deal with Washington, Nairobi signals that it is open for business and capable of handling high-level trade negotiations, potentially encouraging other global partners to follow suit.
Although U.S. Trade Representative Jamieson Greer has not commented publicly on the status of negotiations, discussions are understood to focus on enhancing market access for Kenyan goods, promoting investment, and establishing a framework for innovation and technology transfer. For Kenya, which has been working to diversify its export base, the agreement could prove transformative strengthening competitiveness and positioning the country as a leading trade hub in Africa.
If finalized, the U.S.–Kenya trade deal could mark a turning point ; unlocking jobs, investment, and opportunities that directly benefit ordinary Kenyans.
