TRALAC - Trade Law Centre

USAID supports Kenya’s AGOA strategy to double duty-free exports by 2023

Tuesday, 31 July 2018 Published: | George Tubei

Source: The Pulse

Kenya’s Ministry of Industry, Trade and Cooperatives has launched the Kenya National African Growth and Opportunity Act (AGOA) Strategy and Action Plan (2018-2023) alongside Kenya’s National Export Development and Promotion Strategy. 

The new National AGOA Strategy outlines actions for priority sectors to increase the country’s exports to the U.S. by 10.4 percent annually.

In 2017, Kenya exported goods worth $572 million to the United States.  By 2023, the strategy projects that Kenya’s U.S. exports will reach $1,105 million.

USAID, through its East Africa Trade and Investment Hub (the Hub), supported the Ministry and Kenya’s private sector with the development of the new strategy. 

The Hub assisted the Ministry in reviewing the 2012-2016 Kenya National AGOA Strategy; mapping bilateral trade; identifying sectors with competitive exports; assessing supply-side challenges; and determining strategic action plans.  The new strategy builds upon these lessons to address U.S. market share expansion, buyer diversification, productivity improvements, trade-support capacity building, and export supply development for the apparel, home décor, processed and specialty foods, flowers, coffee, tea, and fresh fruit and vegetables sectors.

kenya strategy agoa 900px

The new National AGOA Strategy outlines actions for priority sectors to increase the country’s exports to the U.S. by 10.4 percent annually. 

 

AGOA and the Generalized System of Preferences (GSP) offer preferential access to the U.S. market for 6,421 eligible product tariff lines.  By leveraging these products’ duty-free access to the United States, Kenya can increase export earnings and investment, advance industrialization, create jobs, and improve domestic economic growth.

AGOA has been the cornerstone of U.S. economic engagement with Kenya since it was signed into law by the U.S. Congress in 2000, and has shifted the focus of U.S.-Kenya economic relations from aid to trade and investment.

We are pleased to join the Government of Kenya today in the launch of its AGOA strategy, aimed at strengthening a mutually beneficial trade relationship.  The AGOA strategy is unique in its invaluable access to the world's largest consumer market.  We encourage the Kenyan private sector to take advantage of AGOA trade preferences to expand exports, build a more prosperous nation, and deepen economic ties with the United States,” said Scott Cameron, Director, Office of Economic Growth and Integration, USAID Kenya and East Africa.

Related News

Kenya seeks to forge close security ties with US

Kenya seeks to forge close security ties with US

Kenya and the United States will continue to cooperate on security in the region, even as both sides focus on advancing economic ties. Ahead of the first Bilateral Strategic Dialogue in Washington on Tuesday, Kenyan government officials say they expect the meeting to also cement security deals focusing on terrorism, policing and border protection. “The two countries are...

07 May, 2019
Kenyan EPZ companies make Sh77.2 billion in sales

Kenyan EPZ companies make Sh77.2 billion in sales

Kenya’s Export Processing Zone-based (EPZ) companies raked in Sh77.2 billion in sales last year, being a 14.7 percent growth compared to Sh67.3 billion realised in 2017. Newly released official data shows that exports, which formed the bulk of trading, rose by 19 percent from 60.7 billion in 2017 to Sh72.3 billion mainly attributed to increased market access in the...

06 May, 2019
Kenyan exports to the US under AGOA rose by 25% in 2018

Kenyan exports to the US under AGOA rose by 25% in 2018

Kenyan exports to the USA in the framework of the African Growth and Opportunity Act (Agoa) rose by 25.8% in 2018, the Kenya National Bureau of Statistics (KNBS) announced in a recent report. In the report, the KNBS indicates that these exports, mainly made of textile products, grew from Ksh33.1 billion in 2017 to Ksh41.6 billion in 2018. The exports under the AGOA...

30 April, 2019
Uganda: Government working on new AGOA strategy

Uganda: Government working on new AGOA strategy

Uganda will, before the end of April, reportedly launch a national strategy that will identify key products that Uganda can leverage on to improve its exports to US.  The strategy, whose formulation started in 2016, seeks to among others, identify five key products that can influence Uganda’s penetration into the US market.  Ms Suzan Muhwezi, the head of...

15 April, 2019
Kenyan textiles maker seeking to expand through AGOA

Kenyan textiles maker seeking to expand through AGOA

Textiles maker Rivatex East Africa Ltd is eyeing regional and international markets with its planned Sh6 billion upgrade. The modernisation drive will increase cotton consumption from 10,000 bales per day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from the previous 5,000. Managing Director Thomas Kipkurgat said the...

14 April, 2019
Kenyan flowers attract US buyers’ interest

Kenyan flowers attract US buyers’ interest

Eight Kenyan exporters of cut flowers made 78 linkages worth an estimated $259,000 at the World Floral Expo in Dallas, TX, USA. The firms were part of a delegation led by the Kenya Flower Council, a USAID Hub grantee. Their trip to the U.S. allowed them to connect with U.S. buyers to further efforts to expand Kenya’s share of the U.S. cut flower market. “Today we met...

11 April, 2019