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