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Kenya and US begin talks on new reciprocal trade deal as AGOA nears expiry

Kenya and the United States have officially opened talks on a new reciprocal trade agreement, signaling a major shift in bilateral relations as the African Growth and Opportunity Act (AGOA) approaches expiry.

The negotiations come amid pressure from fresh tariffs imposed by Washington, including a 10 per cent duty on Kenyan exports announced in April by US President Donald Trump. The move has increased Nairobi’s urgency to secure predictable access to its largest export market outside Africa.

On Tuesday, Trade Cabinet Secretary Lee Kinyanjui led a Kenyan delegation to Washington, D.C., where he met United States Trade Representative (USTR) Ambassador Jamieson Greer. The talks, government sources said, marked a critical step toward a structured and binding trade pact.

Kinyanjui emphasized Kenya’s strong commitment to finalizing a deal that benefits both economies.

“Kenya is deeply interested in the commencement of formal negotiations with the United States Government. A reciprocal trade agreement is crucial for securing long-term access to the US market for Kenyan products and will provide the stability needed to unlock new investments,” he said.

The CS added that several American companies had already expressed interest in expanding operations in Kenya, but stressed that a clear framework was necessary to give investors confidence.

Ambassador Greer welcomed the initiative, describing Kenya as a “key state” for American interests in Africa.

“We applaud Kenya’s focus on strengthening trade with the United States. Let’s build a partnership that leverages the growth of the manufacturing sector in America while providing a market for Kenyan products that cannot be sourced locally,” Greer stated.

Official data from the Ministry shows that trade between the two nations stood at USD 1.5 billion (Ksh193.86 billion) in 2024. A new pact, analysts say, could create fresh opportunities for Kenyan exporters while attracting more American investments.

The two delegations concluded their meeting with a commitment to launch formal negotiations that could replace or improve upon AGOA, which has provided Kenya and other African nations with preferential access to US markets for over two decades.

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