Relief for Kenyan exporters as Trump signs AGOA extension into law

After months of uncertainty, President Donald Trump on Tuesday officially signed an extension, retroactively covering the period since the pact lapsed last September.

However, the fine print suggests that the era of free trade may be shifting toward fair trade under the America First banner. 

For the nearly 70,000 workers in Kenya’s Export Processing Zones, the news from Washington is a lifeline. The formal signing on February 3rd ensures that a variety of Kenyan products will continue to enter the U.S. market duty-free.

The new legislation runs through December 31st this year and, crucially, the deal is retrospective.

The U.S. is one of Kenya’s most vital trading partners, accounting for 9 percent of the country's entire external market. In 2025, Kenya exported $788.6 million worth of goods to the U.S. under this pact.

However, the country imported over $930 million, leaving a sizable trade deficit. Since the year 2000, the U.S. has maintained a cumulative trade surplus of about $1.7 billion with Kenya.

The Kenya Association of Manufacturers, while welcoming the move, warns that the current 16-month extension, shorter than the three years initially hoped for, is a clear signal that the America First policy is here to stay.

The association says the government must move beyond periodic renewals and conclude the Kenya-U.S. Bilateral Trade Agreement to provide long-term stability. The Kenya National Chamber of Commerce has echoed the same call.

"We would like the government to negotiate a long-term trade agreement with the USA because a three-year extension is not enough for long-term investment. As a country and as a private sector, we’d like to have a much more predictable policy environment and also trade with the largest economy in the world, of around $30 trillion," said Dr Erick Rutto, President, Kenya National Chamber of Commerce.

U.S. Trade Representative Jamieson Greer has already indicated that the 21st-century version of AGOA will demand more from its partners.

This could mean that for Kenya to retain its duty-free status after December 2026, it may be required to lower its own trade barriers to U.S. goods.