Trump saves thousands of Kenyan jobs as Agoa extended to 2028
US President Donald Trump gestures after speaking about election security during an address to the nation from the East Room of the White House in Washington, DC, US, July 16, 2026.
Thousands of Kenyan textile workers have received a fresh reprieve after United States President Donald Trump signed into law a two-year extension of the African Growth and Opportunity Act (Agoa), securing duty-free access to the American market until December 31, 2028.
The extension provides relief to about 6,600 workers whose jobs were at risk amid uncertainty over the future of the preferential trade arrangement, giving factories supplying the US market more time to plan production and retain workers.
The move is expected to restore confidence in Kenya’s export processing zones (EPZs), where manufacturers had delayed investment and expansion decisions as the previous Agoa deadline approached.
For workers in the apparel sector, the extension could mean the difference between continued employment and further job losses in an industry heavily dependent on orders from the US market.
Kenya’s textile and apparel industry supports more than 66,000 direct jobs in manufacturing, transport, marketing and other areas, making it one of the biggest beneficiaries of Agoa. The wider industry supports hundreds of thousands of livelihoods through indirect employment and household incomes.
For the about 6,600 workers facing immediate uncertainty, the signing of the extension provides a critical lifeline and potentially more time for factories to retain jobs and rebuild confidence in Kenya’s export manufacturing sector.
“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,” said John Mwangu, a Mombasa Apparels dealer who exports apparel to the US.
Trade Cabinet Secretary Lee Kinyanjui welcomed the decision, saying the extension provides much-needed certainty for exporters and workers whose livelihoods depend on preferential access to the US market.
“The decision by US President Donald Trump to sign into law the extension of the Agoa through December 31, 2028, is highly welcome,” Mr Kinyanjui said.
The reprieve comes after a period of uncertainty that had already affected investment and employment in Kenya’s EPZs.
Kenya lost 5,337 jobs in its export processing zones in the last financial year, while more than 5,000 potential job opportunities linked to factory expansion were lost as manufacturers delayed investment decisions.
The uncertainty was driven largely by concerns over whether Kenyan garments and other eligible products would continue entering the US market without tariffs.
The latest extension now gives manufacturers a clearer two-year window to secure orders, maintain production, invest in machinery and consider expanding their workforce.
Agoa was introduced in 2000 to provide eligible sub-Saharan African countries with duty-free access to the US market for thousands of products. It has been extended several times, including in 2002, 2004, 2006 and 2015, when it was renewed for 10 years.
The programme expired in September 2025 after the US Congress failed to renew it on time, before being temporarily restored in February this year through December 2026.
The latest legislation extends the programme to December 31, 2028, giving Kenyan exporters additional time to benefit from preferential access to the world’s largest consumer market.
The extension is particularly important for apparel manufacturers because most of their production is destined for the US market. Any return of tariffs could raise the cost of Kenyan garments and make factories less competitive against producers in other countries.
For thousands of workers, the uncertainty had therefore extended beyond trade statistics to the security of their incomes.
The government now wants manufacturers to use the additional period to expand production while Kenya works on reducing its dependence on apparel exports.
Mr Kinyanjui said the country must use the extended window to increase the range and value of goods sold in the US.
“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 is targeting value-added agricultural products, leather, pharmaceuticals and manufactured goods as potential areas for expansion.
The aim is to ensure that the benefits of Agoa extend beyond the apparel sector and generate more investment, export earnings and employment.
The two-year extension also gives Kenya time to prepare for the eventual changes to the US-Africa trade framework. The Trump administration had previously signalled its intention to review trade arrangements under its “America First” policy, while some US lawmakers have pushed for changes to the list of countries benefiting from Agoa.
For now, however, Kenyan manufacturers and workers have gained valuable breathing space.
The challenge for the government and industry is to use the period before December 2028 to secure new investments, expand production and diversify exports so that the country is better positioned when the current preferential arrangement eventually expires.
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