KAM Hails US House Vote to Extend AGOA

The Kenya Association of Manufacturers (KAM) has welcomed the decision by the United States House of Representatives to vote in favor of extending the African Growth and Opportunity Act (AGOA) for a further three years, describing it as a critical step toward securing continued preferential market access for Kenyan products.

The vote marks a significant milestone in the legislative process, with KAM expressing optimism that the Bill will receive favorable consideration at the US Senate and Presidential stages.

In the statement, KAM Chief Executive Officer Tobias Alando said it has been at the forefront of sustained advocacy for the extension of AGOA, working closely with the Government of Kenya and partners in the United States to safeguard the trade arrangement that has underpinned Kenya’s export growth to the US market for more than two decades.

Over the years, AGOA has granted eligible African countries duty-free access to over 6,000 product tariff lines, helping to foster a favorable trade balance between Africa and the United States.

For Kenya, AGOA has been particularly transformative for the manufacturing sector. The US market now accounts for about seven per cent of Kenya’s total exports, with the country exporting goods worth Sh60.6 billion to the US in 2024. Kenya is currently Africa’s largest exporter of apparel to the US, with clothing accounting for approximately 72 per cent of exports under the programme.

KAM noted that AGOA-supported industries employ about 68,000 workers directly and support nearly 700,000 dependents, generating roughly $730 million annually in export earnings. The association said these gains have contributed significantly to Kenya’s socio-economic development.

“The House of Representatives’ vote is a clear indication of the US commitment to strengthening US–Africa trade, stability and long-term industrial growth,” KAM said, adding that extending AGOA would preserve gains made by both Africa and the US over the past 25 years amid shifting global trade dynamics.

The CEO said the extension is also expected to attract new investments into Africa, create jobs and stimulate local economies, while increasing demand for American goods and services as African economies grow.

Alando commended the Government of Kenya for its leadership and engagement in advancing negotiations that secured the latest progress, saying the development sends a strong signal to investors at a time of global economic uncertainty.

“This gives confidence to apparel manufacturers in Kenya to further expand their investments,” the association said.

He added that it looks forward to continued collaboration to ensure sustained mutual benefits for both Kenyan and American businesses through AGOA and broader bilateral cooperation frameworks.