Kenya has received a major trade boost after the United States House of Representatives voted to extend the African Growth and Opportunity Act (AGOA) to 2028.

On Monday, January 12, 2026, the House passed the extension with an overwhelming majority, with 340 lawmakers voting in favour and 54 against. The bill will now move to the US Senate and, once approved, will be signed into law.

AGOA allows eligible African countries, including Kenya, to export selected goods to the US market without paying duty. The deal, which was introduced in 2000, was set to expire in September 2025, raising concerns among African governments and exporters.

Why the extension matters

The three-year extension provides certainty and stability for businesses that rely on the US market. Earlier proposals had suggested only a one-year extension, but the longer timeline now gives investors and exporters room to plan, expand, and create jobs.

President William Ruto has been a strong advocate for the extension, arguing that it is crucial for protecting African jobs and strengthening trade ties with the United States. Kenyan officials have welcomed the move, saying it signals a continued commitment to US–Africa trade.

Foreign Affairs Principal Secretary Korir Sing’Oei praised the decision, noting that it supports economic growth and protects livelihoods across the continent. He also expressed optimism that the US Senate will approve the bill.

What Kenya gains from AGOA

Kenya is one of the biggest beneficiaries of AGOA. In 2024 alone, the country exported goods worth about Ksh60.7 billion to the US, mostly apparel.

The extension will protect nearly 70,000 jobs in the country’s export processing zones, most of which are in the textile and apparel industry, where thousands of workers depend on continued access to the US market. Without the deal, many of these jobs would have been lost due to reduced competitiveness.

Kenyan exporters will also avoid heavy tariffs that could have gone as high as 42 per cent, which would have made local products more expensive and less attractive to American buyers. By maintaining duty-free access, Kenyan goods such as apparel, coffee, and tea can continue competing fairly in the US market.

The extension gives businesses and investors confidence to plan for the long term. With certainty running until 2028, companies are more likely to expand factories, invest in new technology, and increase production. This stability is also expected to attract new investors into Kenya’s manufacturing and export sectors.

In addition, the government sees the extension as an opportunity to diversify exports beyond clothing. Kenya plans to grow exports in agriculture, leather products, pharmaceuticals, chemicals, software, and digital services, helping the country earn more foreign exchange and reduce reliance on a single sector.

President Ruto has said Kenya aims to be the first African country to sign a renewed AGOA framework once it is fully authorised, expected in early 2026. Reports also indicate that Kenya delayed signing a trade deal with China to prioritise securing long-term access to the US market.

 As the bill heads to the US Senate, all eyes will be on its final approval, which would lock in these benefits until December 31, 2028.