66,804 jobs at risk as AGOA deal expires in September
Although it was extended in 2015, any future extension must now be approved by the US Congress.
Kenya’s apparel and garment industry saw a surge in growth in 2024, even as fears mounted over the possible end of the African Growth and Opportunity Act (AGOA) in September.
The 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS) shows that employment in AGOA-accredited companies rose sharply to 66,804, up from 58,002 the previous year.
This increase of 8,802 jobs came after a tough 2023, when the industry had lost 12.46% of its workforce due to falling global demand and inflation.
This rebound was supported by renewed investment from the 40 companies operating under AGOA within the Export Processing Zones in Athi River.
These firms raised their capital investments by 21.1% to Sh38.27 billion, helping boost their export earnings by 19.20 % to Sh60.57 billion in 2024.
This was the highest jump in export income since 2018.
The growth, however, comes at a time of deep uncertainty, as the AGOA trade agreement is due to expire in a few months.
The deal, created in 2000 during the Bill Clinton era, was meant to help African countries access US markets without paying tariffs or facing quotas.
Although it was extended in 2015, any future extension must now be approved by the US Congress.
With President Donald Trump’s party controlling Congress and pushing for a more balanced trade approach, concerns have risen among countries relying on AGOA. Kenya’s government has been trying to ease those fears.
"I know many of you are wondering whether AGOA is going to be renewed. Let me confirm to you that it will. I have it on the authority of many of my friends in that country, and I believe that the new administration is also going to support our AGOA plan," President William Ruto said on December 10.
While no clear signs have emerged on whether the current tariff-free terms will remain, Kenya remains hopeful for a positive outcome.
The country is among the biggest beneficiaries of the deal, which covers about 1,800 product lines from 32 African nations.
The strong growth in jobs, investment, and export earnings in 2024 points to the success of the AGOA arrangement.
However, the possibility of its expiry has cast a shadow over the progress made, with thousands of workers now uncertain about the future of their livelihoods.