Kenya’s textile and apparel industry is set to gain greater trade certainty following the US Senate’s approval of legislation extending the African Growth and Opportunity Act (AGOA) through December 31, 2028.
The proposed extension would maintain preferential duty-free access to the United States for eligible products from Kenya and other beneficiary sub-Saharan African countries. However, the legislation still needs to complete the US legislative process before the extension becomes fully effective.
For Kenya, the development is particularly significant for the apparel industry, which has become one of the country’s most successful export-oriented manufacturing sectors.
Kenya’s Ministry of Investments, Trade and Industry welcomed the Senate decision, highlighting its importance for manufacturers, exporters, workers and future investment in the country’s Export Processing Zones (EPZs).
Apparel Accounts for 70% of Kenya’s US Exports
Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui said the proposed extension would provide manufacturers with greater predictability when planning production and investment.
According to the ministry, apparel represents approximately 70% of Kenya’s total exports to the United States, making continued preferential access particularly important for the country’s textile and garment sector.
The extension is also expected to preserve AGOA’s important third-country fabric provision.
This provision allows qualifying apparel manufacturers to source yarns and fabrics from countries outside the AGOA region, manufacture garments within eligible African countries and export qualifying finished products to the United States under preferential conditions.
For Kenya’s EPZ-based garment manufacturers, maintaining this sourcing flexibility is particularly important for remaining competitive in international apparel supply chains.
Kinyanjui said continuation of the provision would help protect Kenya’s expanding apparel manufacturing industry while giving companies greater confidence to retain US orders and consider additional investments.
Read More: Kenya Exports More Apparel to the US but Earns Less, Raising Concerns for Textile Industry
Kenya Apparel Exports Reach $470 Million
AGOA has played a major role in the development of Kenya’s export-oriented garment manufacturing sector.
According to figures cited by Kenya’s Ministry of Trade from the 2025 Kenya National Bureau of Statistics Economic Survey, Kenyan apparel exports under AGOA reached approximately KSh60.6 billion ($470 million) in 2024, compared with KSh50.8 billion in 2023—an increase of about 19%.
The sector also supports more than 66,000 direct jobs, making the future of preferential US market access an important issue for Kenya’s industrial and employment strategy.
The continuation of AGOA could also help protect investments already made in factories, equipment, workforce training and manufacturing infrastructure within Kenya’s EPZs.
Exporters Could Receive Duty Refunds
Another important element of the proposed legislation concerns shipments made during the period following AGOA’s previous expiry.
The bill provides for retroactive preferential treatment for eligible products, creating a mechanism through which qualifying exporters could recover certain duties paid during the lapse in the programme. Congressional text provides for eligible refunds to be paid without interest and establishes a 90-day framework in the relevant circumstances.
Kenya’s Trade Ministry has said it intends to assist exporters with the process of seeking eligible refunds from US Customs and Border Protection once the legislation is enacted.
This provision could provide financial relief to manufacturers and exporters affected by uncertainty surrounding the programme.
AGOA Supports Kenya’s Industrialisation Strategy
While apparel has emerged as one of the biggest beneficiaries, AGOA market access has also supported Kenyan exports in sectors including agriculture.
For the textile and apparel industry, however, the programme has been particularly important in attracting export-oriented manufacturing investment and connecting Kenyan factories with US buyers.
The proposed extension through 2028 would provide manufacturers with a longer planning horizon at a time when global apparel sourcing is being reshaped by geopolitical risks, supply-chain diversification and pressure for shorter and more resilient sourcing networks.
Kenya also intends to use the renewed period of trade certainty to expand production capacity and diversify its exports across thousands of products eligible for preferential treatment.
Kenya Looks Beyond 2028
The latest development provides Kenya’s apparel industry with additional breathing room, but it also highlights the importance of establishing a longer-term framework for US-Africa trade.
The Kenyan government has indicated that it will continue discussions with the United States on bilateral trade and investment arrangements while encouraging domestic manufacturers to expand production and investment.
For Kenya’s garment sector, the period through 2028 could therefore become an important window for strengthening manufacturing capacity, improving competitiveness and attracting additional investment.
With approximately $470 million in AGOA apparel exports recorded in 2024 and tens of thousands of jobs connected to the sector, maintaining access to the US market remains strategically important for Kenya.
The Senate’s approval is an important step toward providing that certainty, although manufacturers and exporters will be watching the remaining US legislative process before treating the extension through December 2028 as final.
