Kenyaโs private sector has taken centre stage at the 80th United Nations General Assembly in New York, urging the renewal of the African Growth and Opportunity Act (AGOA).
The Kenya Private Sector Alliance (KEPSA) warned that the future of Sh60.7 billion in apparel exports and hundreds of thousands of livelihoods depends on the agreementโs extension.
Billions in exports and thousands of jobs at stake
According to KEPSA, Kenya exported apparel worth Sh60.7 billion in 2024, a trade that supported 66,800 direct jobs, with three-quarters of them held by women.
The organisation noted that nearly 800,000 people rely on these jobs for their livelihoods.
KEPSAโs call for renewal or a transition period
At the KenyaโUS Investment Forum, organised with the Corporate Council on Africa, the Kenya Investment Authority and the Government of Kenya, KEPSA called for a 16-year renewal of AGOA.
If this cannot be secured, the alliance is proposing a two-year transition period to give room for a bilateral trade deal between Nairobi and Washington.
The group argued that this safeguard would protect jobs in both countries, preserve investor confidence, and strengthen economic ties.
KEPSAโs case in their own words
While setting the context for a panel discussion on financing investment projects in Kenya, KEPSAโs Chief Executive Officer, Carole Kariuki, highlighted the impact of AGOA.
โAGOA has been the single most effective U.S. policy tool in Africa over the last 25 years. It has supported industries, created jobs, and transformed lives,โ Kariuki stated.
Benefits for American consumers and supply chains
KEPSA pointed out that AGOA generates annual consumer savings in the United States valued at between Sh25.8 billion and Sh32.3 billion.
The alliance stressed that the agreement also helps diversify supply chains away from China, secures stability in Sub-Saharan Africa by linking economic growth to reduced conflict risks, and supports jobs in logistics, retail and distribution.
Leaders behind the push
The Kenyan delegation in New York was led by KEPSA CEO Carole Kariuki, together with KEPSA Chair Jas Bedi, Vice Chair Brenda Mbathi, and top executives, including the heads of Safaricom and KCB Bank.
The panel session was moderated by Paul C. Ansah of the Albright Stonebridge Group, and featured Jas Bedi, KCB Group CEO Paul Russo, ABSAโs U.S. representative Garth Klintworth, USDFC Senior Vice President Mateo Goldman, and ARISE IIP Chief Executive George Olaka.
Conclusion
As discussions in New York unfold, KEPSAโs position is clear: renewing AGOA for 16 years, or at least establishing a two-year transition, is vital to safeguard Kenyaโs manufacturing base, protect livelihoods, and sustain mutually beneficial trade.
The outcome of these talks could determine the future of KenyaโU.S. economic relations for years to come.
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