Kenya to ink deal with China amid AGOA uncertainty
Kenya is shifting its trade focus to China, as questions loom over the fate of the U.S.-supported African Growth and Opportunities Act (AGOA) framework.
AGOA is a trade agreement between the United States and Sub-Saharan African countries. It provides 32 African countries with duty-free access to the US market.
You might also like
Also Watch: Kenyan Jobs at Risk as AGOA Renewal Deadline Looms
In a statement released on Tuesday, October 14, 2025, the Ministry of Trade revealed that the deal would seek to expand market access in the areas of tea and coffee, which would be severely affected after AGOA’s expiry.
“Kenya and China are working on a preliminary trade deal aimed at strengthening trade and investment ties between the two countries,” the X post read in part.
Talks held between government officials and the Chinese Ambassador to Kenya, Guo Haiyan, indicated that the deal would also be aimed at enhancing Sanitary and Phytosanitary (SPS) measures for fish and agricultural products to facilitate smoother trade and ensure compliance with international standards.
“The Principal Secretary for Trade, Regina Ombam, met with the Ambassador of the People’s Republic of China to Kenya, Guo Haiyan, for discussions on progress toward the agreement, which seeks to expand market access, especially for Kenya’s key export sectors, such as tea and coffee, and promote greater economic cooperation,” the statement read.
Also Watch: Ruto Confirms US Extension of AGOA Deal, Securing Jobs for Thousands
Although President William Ruto announced on October 4, 2025, that the US had extended the deal by one year, neither Kenyan nor US trade officials have issued formal confirmation.
The Head of State announced while speaking at Nyang’ori PAG Church Centenary, where he revealed that the decision to extend the agreement by a year was successful due to his recent trip to the US, where he held talks with the US government over the trade deal.
The AGOA deal
In the agreement, Kenyan exporters have tax-free access to the massive US market, with the textile, tea, and coffee industries being the biggest beneficiaries.
Ruto’s disclosure of the extension of the AGOA deal came barely four days after the 25-year trade agreement expired on September 30, 2025.
The trade agreement played a crucial role in Kenya’s economic development. In 2024, for example, Kenya led Sub-Saharan Africa in apparel exports to the United States, earning Ksh77.5 billion and creating 70,000 direct jobs for Kenyans.
The new trade deal with China continues Kenya’s relationship with the Asian superpower, coming months after Ruto struck deals worth Ksh100 billion spanning across several areas of development in Kenya’s economy.
Through a statement, Ruto revealed the deals in areas such as tourism, manufacturing, and agriculture worth Ksh100.1 billion during his five-day official visit in April 2025.
The new deal is expected to cause ripples within the US government, as China is seen as one of America’s biggest competitors in the race to become the world’s biggest superpower.
