Joint Kenya–US trade deal to boost high-value exports
By Faith Lagat, December 5, 2025Kenya is advancing plans for a comprehensive bilateral trade pact with the United States after President William Ruto held talks with United States Trade Representative Ambassador Jamieson Greer in Washington, D.C.
The discussions come a day after Kenya and the Trump Administration signed a landmark of over Ksh240 billion health partnership, the first agreement under a new U.S. framework for direct bilateral aid.
Expanding export sectors
In a post on X dated December 5, 2025, President Ruto outlined the sectors targeted for expansion under the evolving trade framework.
“We have identified several areas for expansion: apparel and textiles, agricultural products, leather and footwear, chemicals and pharmaceuticals, and ICT and digital services. These sectors hold strong potential to create jobs, increase export earnings, and strengthen value chains at home,” he stated.
The planned framework aligns with Kenya’s ambition to grow its high-value exports following the lapse of the African Growth and Opportunity Act (AGOA) on September 30, 2025.
AGOA had supported over $600 million in annual exports, mainly apparel, sustaining more than 300,000 jobs.
Ruto said the talks mark a shift toward a more predictable, longer-term arrangement.
“Our discussions focused on establishing a bilateral trade arrangement that will deepen the partnership between our two nations. To achieve this, we are developing a joint framework that will unlock more opportunities for trade and build a more predictable environment for investment,” he said.
AGOA extension proposal
President Ruto also welcomed the U.S. proposal to extend AGOA by one year as Congress considers S.2958.
“We welcome the proposal by the current administration to extend AGOA in full for one year, a matter that is currently pending before US Congress. Amb. Greer informed that the one year extension would provide the administration time to design a stronger and more comprehensive programme that advances the interests of both sides,” he added.
The extension is expected to cushion more than 100,000 apparel workers who faced uncertainty after the programme’s expiry.
Historic health partnership
The trade negotiations coincided with a major health pact signed on December 4, 2025, in Washington, D.C.
Ruto described it as “the signing of the historic Health Cooperation Framework between Kenya and the Government of the United States.”
The five-year, over Ksh240 billion agreement, witnessed by U.S. Secretary of State Marco Rubio and Prime Cabinet Secretary Musalia Mudavadi, channels funds directly through Kenyan institutions.
Ruto, on his address, said it will strengthen universal health coverage through modern equipment, improved delivery of medical commodities, expanded workforce capacity, and broader insurance protection.