Thousands of Kenyan Jobs Saved as Trump Extends Agoa to 2028

US President Donald Trump has approved a two-year extension of the African Growth and Opportunity Act (Agoa), securing duty-free access to the American market for Kenya’s textile and apparel exporters until the end of 2028.

The extension provides relief to manufacturers in Kenya’s export processing zones (EPZs), where investment and expansion plans had slowed amid uncertainty over the future of the trade arrangement. It also protects thousands of jobs that had been at risk as the previous deadline approached.

About 6,600 workers whose jobs were immediately threatened are expected to benefit from the extension. The wider textile industry supports more than 66,000 direct jobs, in addition to many indirect livelihoods, making it one of the major beneficiaries of Agoa.

Manufacturers had already begun preparing for possible job cuts. John Mwangu, a dealer with Mombasa Apparels, said the company had considered reducing its workforce if the agreement was not extended.

“We were concerned and we were contemplating sending some of our staff home if the signing wasn’t done on time. That is the biggest relief to us,” he said.

The government has welcomed the extension, saying it gives exporters and workers greater certainty. Trade Cabinet Secretary Lee Kinyanjui said manufacturers should use the additional period to diversify Kenya’s exports and increase the value of products sold in the US market.

“Beyond apparel, our focus must now be on using this extended window to expand Kenya’s export basket and increase the range and value of products reaching the US market,” he said.

The government has identified value-added agricultural products, leather, pharmaceuticals and other manufactured goods as sectors with potential for increased exports to the US. The extension follows a difficult period for Kenya’s EPZ sector. More than 5,000 potential jobs were lost last year as manufacturers postponed investment decisions, while 5,337 existing jobs were also lost.

The new two-year period gives companies a clearer timeframe to secure orders, invest in machinery and consider expanding their workforces. However, the extension is not permanent, leaving the government and manufacturers with the task of preparing for possible changes to the US-Africa trade framework.

Agoa was introduced in 2000 and has been renewed several times. In 2015, it was extended for 10 years. Its expiry in September 2025, followed by a temporary restoration earlier this year, highlighted the uncertainty surrounding Kenya’s reliance on preferential access to the US market.

The latest extension provides additional time for Kenya to strengthen its export sector, while uncertainty remains over the long-term future of the arrangement. The Trump administration has indicated that Agoa could be reviewed under its “America First” trade policy, while some US lawmakers have questioned the scope of countries benefiting from the programme.