Over 66,000 textile jobs at risk as AGOA trade deal nears expiry
This job growth marked a strong recovery after the sector lost over 8,200 jobs in 2023. Employment had dropped by 12.46 per cent from 66,260 in 2022 due to declining global textile sales triggered by high inflation that reduced household spending.
More than 66,000 jobs in Kenya’s garment and textile export sector are in jeopardy as the African Growth and Opportunity Act (AGOA) nears its expiry in September, casting uncertainty over the future of the country’s leading export earners.
According to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS), the number of workers in companies accredited to export under the AGOA pact rose to 66,804 in 2024, an increase of 15.18 per cent compared to 58,002 in 2023.
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The sharp rise in employment followed growing demand for Kenyan apparel ahead of the anticipated end of the duty- and quota-free trade arrangement.
This job growth marked a strong recovery after the sector lost over 8,200 jobs in 2023. Employment had dropped by 12.46 per cent from 66,260 in 2022 due to declining global textile sales triggered by high inflation that reduced household spending.
According to Business Daily, the 40 firms operating within the Export Processing Zones (EPZ) under AGOA also scaled up their capital investments by 21.1 per cent to Sh38.27 billion in 2024.
As a result, earnings from exports jumped by 19.20 per cent to reach Sh60.57 billion. This was the highest export growth since 2018, when export earnings rose by 25.80 per cent to nearly Sh41.58 billion.
Despite the positive growth in 2024, concerns remain over the looming expiry of AGOA. The agreement, introduced in 2000 during the presidency of Bill Clinton, was aimed at helping sub-Saharan African countries become part of the global market system. It was initially set for 15 years but was extended in 2015 for another decade.
Any further extension now depends on approval by the US Congress, which is currently controlled by President Donald Trump’s Republican Party.
His administration’s push for reciprocal trade deals has created anxiety among countries that benefit from AGOA.
President William Ruto addressed the uncertainty during a speech on December 10, 2024, seeking to reassure businesses that rely on the trade pact.
“I know many of you are wondering whether AGOA is going to be renewed. Let me confirm with you that it will. I have it on the authority of many of my friends in that country, and I believe that the new administration is also going to support our AGOA plan,” he said.
Kenya is one of the main beneficiaries of the trade deal, which allows about 1,800 product lines from 32 African countries to access the US market without tariffs or quotas.
The deal has helped Kenya build a strong apparel export sector, but with time running out, the country now faces a tense wait to see if its biggest trade opportunity will survive beyond September.
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