TRALAC - Trade Law Centre

Kenya develops new AGOA strategy

Friday, 19 January 2018 Published: | Philip Meso

Source: Hivisasa

Kenya will have an advantage of increasing its exports to the United States when direct flights between the two countries begin in October this year.

Principal Secretary State Department of Trade Dr. Chris Kiptoo said that Kenya, which is leading in Sub-Sahara exports, considers the US as a strategic market that it is ranked number three in terms of an export destination for Kenyan goods.

He was addressing delegates in export business who converged in Nairobi on Thursday to develop a second strategy to support the ability of Kenyan firms to successfully sell into the U.S market, leveraging every opportunity that African Growth and Opportunity Act (AGOA) provides through an exchange programme.

The PS noted that the US International Trade Commission estimates the value of Kenyan exports to the US to have grown from Sh11 billion in the year 2000 to an excess of Sh55 billion in 2016, adding that “The exports have led to the creation of over 200,000 jobs in Kenya.”

He stated that the exports comprise mainly of textiles and apparels made under the well-known export processing zones.

“At this rate, it is possible for the US to move to the second position as an export destination for Kenyan goods. Starting from the beginning of October the direct flights from Kenya to the US will be of an advantage to the market,” the PS added.

He said that some of the challenges in the first AGOA strategy that the second seeks to change include lack of resources in undertaking country wide AGOA awareness programs.

Kiptoo also said that most parts of the country did not involve themselves in AGOA activities and institutions would change officers attending the meetings, thus adversely affecting continuity of services.

Kenyan based local and foreign business people and representatives from counties participated in the forum.

According to USAID Kenya/ East Africa Acting Mission Director Dr. Tina Dooley-Jones, AGOA, which provides a duty-free market to the U.S is not only a window but a huge door through which Kenyan private sector and companies can use.

“This is a huge trade benefit to both Kenya and the U.S.,” she said.

AGOA which has yet to complete its new strategy by end of January is a nonreciprocal trade preference program that provides imports to the U.S of certain products from eligible sub-Saharan African countries.

 

Related News

Kenya: US Ambassador Godec’s remarks on direct flight launch between Nairobi and New York

Kenya: US Ambassador Godec’s remarks on direct flight launch between Nairobi and New York

Waheshimiwa, mabibi na mabwana, hamjambo! Habari za jioni? This is an historic day for Kenya and the United States!  And I am very glad to be here to share it with you.  If there’s one phrase that sums up today, it has to be: when you dream big “the sky’s the limit”! The United States and Kenya have a long and extraordinary partnership.  Over 55...

28 October, 2018
Hello, America! USAID, direct flights to increase AGOA exports to US

Hello, America! USAID, direct flights to increase AGOA exports to US

The US Agency for International Development (USAID) Hub will from November 2018 to March 2019 provide direct support in the audit and Worldwide Responsible Accredited Production (WRAP) certification process. Already, USAID is helping companies in the East African region become more export competitive. WRAP is a minimum standard for social compliance where US textile and...

19 October, 2018
Kenya looks beyond apparel to double earnings from AGOA

Kenya looks beyond apparel to double earnings from AGOA

Kenya is betting on bigger shipments of processed food, tea and coffee to help double its export earnings from the US free-trade deal in five years’ time — marking a shift from its long dependence on apparels. Several Kenyan products, notably apparel and agricultural produce, are big beneficiaries of the preferential African Growth and Opportunity Act (Agoa)...

30 September, 2018
Kenyan government presents USAID Hub-supported AGOA Strategy to USTR

Kenyan government presents USAID Hub-supported AGOA Strategy to USTR

On August 28, 2018, Kenyan Cabinet Secretary for Industry, Trade and Cooperatives Peter Munya (represented by Trade Principal Secretary Dr. Chris Kiptoo, pictured on left) delivered Kenya’s National African Growth and Opportunity Act (AGOA) Strategy and Action Plan 2018-2023 to U.S. Trade Representative Robert Lighthizer in Washington, DC. The Strategy, which aims to...

31 August, 2018
Warmer Kenya-US relations good for trade and investment

Warmer Kenya-US relations good for trade and investment

The meeting earlier this week between President Uhuru Kenyatta and his United States counterpart Donald Trump should, hopefully, cement strategic interests between the two countries. It signals how much bilateral relations have warmed up since the infamous “choices have consequences” warning by a senior US government officer before the 2013 elections. For Kenya,...

30 August, 2018
Kenya, US establish trade investment working group

Kenya, US establish trade investment working group

Kenya and United States of America have established a trade and investment working group to explore ways of deepening business ties between the two countries. The  United States Trade Representative, Robert Lighthizer and the Kenyan Industry, Trade and Cooperatives Cabinet Secretary, Peter  Munya jointly announced establishment of the partnership in the US on...

28 August, 2018