Kenya Urges Swift Action for 16-Year AGOA Extension to Protect Jobs and Exports

Members of Parliament have called on the government to accelerate negotiations with the United States to extend the African Growth and Opportunity Act (AGOA), set to expire this month. The looming deadline threatens to disrupt thousands of jobs and destabilize Kenya's export-driven economy, with significant implications for livelihoods, particularly for women who make up approximately 75 percent of the program's direct beneficiaries.

In a parliamentary session on Wednesday, legislators emphasized the critical need to secure an extension to safeguard economic stability. The motion, sponsored by Laikipia Woman Representative Jane Kagiri, underscored the severe risks posed by AGOA's expiration. The program, last extended in 2015, supports approximately 66,000 direct jobs in Kenya and countless indirect jobs across Sub-Saharan Africa. Without renewal, sectors dependent on AGOA face economic disruption and increased poverty.

Kagiri proposed a 16-year extension of AGOA until 2041 to ensure long-term prosperity and protect economic gains. She also suggested a two-year transitional period in case of delays, allowing time to establish a new trade framework that secures businesses and jobs in both Kenya and the United States. AGOA has been instrumental in boosting Kenyan exports, including coffee, nuts, fruits, and vegetables, which generated over USD 500 million in 2020. The program has also strengthened local textile and cotton industries, creating thousands of jobs.

The benefits of AGOA extend beyond Kenya, supporting supply chain diversification for the United States and fostering stronger bilateral trade ties. The program has also opened opportunities for American businesses under the African Continental Free Trade Area (AfCFTA), enhancing economic collaboration across the continent.

Other legislators echoed the urgency of the situation. Kilifi North MP Owen Baya highlighted AGOA's role in creating jobs for Kenyan youth, noting that its expiration could lead to market uncertainty, deter investment, and disrupt supply chains, impacting businesses in both Africa and the United States. Tharaka MP George Murugara emphasized the regional significance of AGOA, warning that its termination would affect not only Kenya but the broader Sub-Saharan region. He called for stronger bilateral agreements to ensure continuity and address trade imbalances.

Sirisia MP John Waluke made a direct appeal to U.S. leadership, urging them to consider the extension to prevent economic hardship in Kenya. The push for a renewed AGOA reflects Kenya's commitment to sustaining its economic progress and protecting the livelihoods of thousands who depend on the program's benefits.

As negotiations continue, the Kenyan government faces mounting pressure to secure a deal that ensures stability for its export sector and reinforces its trade partnership with the United States. The outcome of these talks will shape the future of Kenya's economy and its role in regional and global trade networks.