The United States has approved a three year extension of the African Growth and Opportunity Act through December 31 2028, allowing Kenya and other eligible sub Saharan African countries to continue exporting most goods to the US without paying import taxes. The extension follows uncertainty that emerged when the programme expired on September 30 2025 after the end of its previous mandate.
The extension was approved by the US House of Representatives in January 2026 with bipartisan support. The bill is expected to proceed to the US Senate and then to the President for final approval before becoming law. Lawmakers said the move was aimed at restoring trade stability and protecting economic ties between the United States and Africa.
AGOA was originally enacted by the US Congress in May 2000 to support economic growth and strengthen trade relations with African countries. The programme allows more than 1800 products from eligible nations to enter the US market duty free, including textiles, agricultural goods, and manufactured products.
For Kenya, the extension provides relief to export oriented industries that rely heavily on the US market. The textile and apparel sector, largely based in Export Processing Zones, remains one of the biggest beneficiaries. In 2024, Kenya’s apparel exports to the US were valued at about Sh60.6 billion. The sector supports tens of thousands of jobs across the country.
Investments Trade and Industry Cabinet Secretary Lee Kinyanjui welcomed the extension in a statement issued in January 2026. “The uncertainty that had previously engulfed the sector will now give way to renewed confidence and expansion,” he said.
The Kenya Private Sector Alliance also welcomed the decision, noting that many firms had delayed expansion plans due to concerns over the earlier expiry of AGOA. KEPSA Chief Executive Officer Caroline Kariuki said the extension would help preserve jobs and boost investor confidence. “This move restores stability for exporters and reassures investors who depend on predictable market access,” she said in January 2026.
The extension also includes provisions to refund duties paid on qualifying goods that entered the US market between September 30 2025 and the date the new law takes effect. This measure is intended to ease losses suffered by exporters during the temporary lapse period.
Beyond Kenya, the AGOA extension supports continued trade for dozens of sub Saharan African countries that rely on preferential access to the US market. Governments across the region view the programme as a key tool for boosting exports, attracting investment, and creating jobs.
Trade officials say the additional three years offer an opportunity for African countries to diversify exports and strengthen their global competitiveness. As discussions on long term trade arrangements continue, the AGOA extension provides short term certainty for businesses planning production, hiring, and expansion strategies.
With the new deadline now set for December 31 2028, Kenyan exporters have renewed confidence that duty free access to the US market will remain in place while broader trade frameworks are explored.
