AGOA Expiry Threatens Over 66,000 Kenyan Textile Jobs
Kenya’s garment and textile export industry faces major uncertainty as the African Growth and Opportunity Act (AGOA) nears its scheduled expiry in September 2025, potentially putting more than 66,000 jobs in jeopardy.
According to the 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS), employment in AGOA-accredited firms rose sharply by 15.18% in 2024, reaching 66,804 workers up from 58,002 in 2023. The spike followed increased U.S. orders in anticipation of the trade pact’s end, boosting both investment and exports.
Firms within Kenya’s Export Processing Zones (EPZs), key players in AGOA trade, raised capital investments by 21.1% to Sh38.27 billion, while export earnings grew 19.2% to Sh60.57 billion — the highest growth since 2018.
This recovery comes after a 12.46% drop in employment in 2023, when global inflation curbed apparel demand and led to the loss of over 8,200 jobs. AGOA has played a pivotal role in shaping Kenya’s apparel industry since its launch in 2000, allowing duty- and quota-free access for over 1,800 product lines from 32 African countries to the U.S. market.
Although AGOA was extended in 2015 for another 10 years, its future now hinges on approval by the U.S. Congress. Growing pressure for reciprocal trade deals under the Republican-led administration has raised concerns across beneficiary nations.
President William Ruto, in a December 2024 address, expressed confidence in AGOA’s renewal, stating: “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.”
For Kenya, one of the top AGOA beneficiaries, the coming months will be critical in determining whether its thriving apparel sector can retain duty-free access to the U.S. market or face a significant economic setback.
