Kenya’s textile and apparel industry is breathing a sigh of relief as the United States signals it may extend the African Growth and Opportunity Act (AGOA) even if only for a year.

The trade pact, which lapsed on September 30, has for decades given sub-Saharan countries, including Kenya, duty-free access to the US market. It has been central to the survival of Kenya’s apparel exporters and the jobs they create.

The White House is now reported to support a one-year extension, offering a short-term reprieve as Washington and Nairobi continue bilateral trade talks expected to shape future relations.

This is the first time President Donald Trump’s administration has taken a position on AGOA since he took office.

The renewal has gained rare bipartisan backing from Republicans and Democrats, increasing the likelihood of swift approval by Congress.

“We are looking forward to the renewal in its current or new format. Trade between Kenya and the US is crucial for our historical relationship,”  Tobias Alando, CEO of the Kenya Association of Manufacturers, said.

The AGOA Renewal and Improvement Act of 2024, introduced by Senators Chris Coons and James Risch, had proposed a much longer extension of 16 years to 2041, to keep Africa’s duty-free status and attract private sector investment for development.

Even a short extension would be crucial for Kenya’s Export Processing Zones. The apparel sector directly employs about 66,000 people and indirectly supports over 660,000 Kenyans when dependents are counted.

Kenya has been one of AGOA’s biggest beneficiaries since the law came into force in May 2000. In 2024 alone, Kenya exported $470 million (Ksh 60.7 billion) worth of apparel to the US.

The Kenya Private Sector Alliance (Kepsa) had pushed for a 16-year renewal or at least a two-year transition window to avoid disruptions as trade negotiations continue.

“This will safeguard jobs for both Kenya and the US, ensure continuity, investor confidence and deeper US-Kenya ties beyond AGOA,” said Kepsa CEO Carole Kariuki.

“We are now waiting,” she added, expressing optimism that the pact will be extended.

The American Chamber of Commerce in Nairobi has also been lobbying for renewal. Working with the US Chamber of Commerce, it submitted its case to key US policymakers, including House Ways and Means Chairman Jason Smith, Ranking Member Richard Neal, Senate Finance leaders Mike Crapo and Ron Wyden, and US Trade Representative Jamieson Greer.

According to AmCham, AGOA is vital for sustaining jobs and supply chains in Kenya’s textile sector while strengthening US-Africa trade links.

“We have urged bipartisan Congressional approval to preserve these vital economic and strategic advantages for both Kenya and the United States,” the AmCham leadership in Nairobi said.