Kenya targets export diversification as Trump extends AGOA by two years

NAIROBI, Kenya, Sep 5-Kenya has welcomed the extension of the African Growth and Opportunity Act (AGOA) to the end of 2028, with the government urging exporters and manufacturers to use the additional two-year window to diversify beyond apparel and drive industrialisation.

The extension, signed into law by US President Donald Trump, provides continued preferential access to the American market for Kenyan exporters at a time when the country is seeking to expand its export base and attract investment into manufacturing.

Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui said the extension provides critical certainty for businesses that depend on access to the US market, particularly Kenya’s textile and apparel industry.

“This is a significant development for Kenya and provides much-needed certainty for exporters, manufacturers and investors who rely on preferential access to the United States market,” Kinyanjui said.

The textile and apparel sector remains one of the biggest beneficiaries of AGOA, supporting more than 66,000 direct jobs in Kenya.

But the government now wants the country to use the extended preferential trading window to move beyond garments and increase the number and value of Kenyan products entering the US market.

“Beyond apparel, our focus must now be on using this extended window to expand Kenya’s export basket and increase the range and value of products reaching the U.S. market,” Kinyanjui said.

He identified value-added agricultural products, leather and leather products, pharmaceuticals and manufactured goods as some of the areas where Kenya could increase exports to the United States.

The government will work with exporters and the private sector to increase utilisation of AGOA and ensure more Kenyan businesses and domestic value chains benefit from preferential access to the US market.

Kinyanjui said the extension should not be viewed merely as a continuation of existing trade preferences but as an opportunity to accelerate Kenya’s broader industrial ambitions.

“AGOA should therefore serve as a catalyst for Kenya’s industrialisation, value addition, investment and job creation,” he said.

The extension to December 31, 2028 gives Kenyan manufacturers and exporters additional time to plan investments and strengthen their presence in the US market, while also putting pressure on the country to address longstanding challenges around export diversification and value addition.

Kenya’s apparel sector has been a major beneficiary of AGOA, with preferential access helping manufacturers serving the US market and supporting tens of thousands of jobs.

The government’s latest position signals a push to replicate that success across other sectors by increasing the share of processed and manufactured goods in Kenya’s exports.

The White House said Trump signed the “Continuing Appropriations and Extensions Act, 2027” into law on September 2, 2026. The legislation includes a short-term funding measure for federal agencies as well as extensions of authorities for several programmes.