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Business

Trump Extends Duty-Free Access for Kenyan Exports to the US Market

Trump Extends Duty-Free Access for Kenyan Exports to the US Market
Trump Extends Duty-Free Access for Kenyan Exports to the US Market

Kenya will continue to benefit from duty-free access to the United States market after US President Donald Trump extended the African Growth and Opportunity Act (AGOA) until the end of 2026.

The proclamation, signed on 19 May, amends Section 506B of the Trade Act of 1974 and allows sub-Saharan African countries, including Kenya, to retain preferential access to the American market. The extension preserves duty-free treatment for more than 6,500 product lines and is expected to maintain Kenya’s position in one of the world’s largest consumer markets. 

Textiles and apparel remain the country’s main AGOA exports, accounting for more than 90 percent of shipments to the United States. The sector supports over 80,000 jobs in Export Processing Zones in Nairobi, Mombasa, and Athi River.

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Industry stakeholders have also welcomed the continuation of the third-country fabric rule. The provision allows manufacturers to import fabric from countries such as China and India, produce garments locally, and still qualify for duty-free entry into the United States.

Agricultural exports are also expected to benefit from the extension. Kenyan coffee, tea, macadamia nuts, fresh flowers, fruits, and vegetables will continue to enter the US market without tariffs. Kenya’s annual exports to the United States are currently valued at between USD 730 million and USD 830 million, equivalent to about KSh94.5 billion to KSh107.5 billion.

However, several sectors still face barriers in accessing the American market. Horticulture, processed foods, floriculture, and meat exports have struggled to meet strict sanitary and phytosanitary requirements. Kenyan exporters also face challenges linked to Food and Drug Administration interception rates, pesticide residue limits, and pest control standards.

Kenyan industry representatives and US regulators are continuing discussions aimed at improving certification procedures for horticultural exports and reducing compliance obstacles. The proclamation also restores Gabon as an AGOA beneficiary from January 2026. 

The country had been suspended in 2023 following a military coup. For Kenya, the extension secures continued access to the US market for key export industries.

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