KENYA FREEZES CHINA TRADE DEAL UNDER U.S. PRESSURE AS AGOA EXPIRY PUTS 66,000 JOBS AT RISK

KENYA FREEZES CHINA TRADE DEAL UNDER U.S. PRESSURE AS AGOA EXPIRY PUTS 66,000 JOBS AT RISK

By: The Citizen

Nairobi has put on hold the signing of a planned trade agreement with China following pressure from the United States, according to a report by The Standard, which quoted sources familiar with the discussions.

The agreement still needs clearance from the Cabinet, Parliament and President William Ruto before it can be finalised.

The delay comes as Kenya pushes to secure the renewal of its access to the African Growth and Opportunity Act (AGOA), a long-standing US trade programme that has allowed eligible Kenyan goods to enter the American market without import duties for more than two decades.

AGOA expired on September 30, 2025, and the US Congress has yet to approve a replacement framework. Since its expiry, Kenyan apparel exports to the US  valued at over $600 million each year  have been subjected to tariffs of up to 28 percent.

Industry groups warn that prolonged uncertainty could threaten more than 66,000 jobs, particularly in the textile and agricultural sectors.

Kenyan officials had viewed the proposed China deal as a possible cushion against the impact of losing AGOA benefits. The draft agreement reportedly includes plans for China to remove tariffs on Kenyan tea, coffee and avocados, offering alternative export markets and helping offset rising costs in the US.