Kenya, US hold first round of talks on reciprocal trade framework

Kenya and the US have concluded the first round of consultations on a reciprocal trade agreement, as the former seeks long-term gains beyond AGOA.

The  country seeks to secure preferential trade terms beyond December, when the Agoa Act, which has been renewed for one year, expires.

President Donald Trump on February 3 signed into law the legislation that reauthorised the African Growth and Opportunity Act (Agoa) trade preference programme through December 31, 2026, with retroactive effect to September 30, 2025.

Trade PS Regina Ombam this week led a Kenyan delegation for talks in Washington, where they met a US team headed by acting assistant US Trade Representative for Africa, Osvaldo Gómez-Martinez, for talks on a bilateral trade pact.

The consultations covereda focused range of priority areas, including trade in goods, tariffs and addressing non-tariff barriers, trade in agricultural commodities, trade in services, digital trade, intellectual property, investment, economic security and commercial cooperation.

At the height of the Trump Tariffs last year, Kenya was among the countries that were slapped with a base tariff line, where the country’s rate was set at 10 per cent, making it more expensive for local companies to export goods to the US.

While the US posed imposition implementation of some higher tariffs for specific markets to allow talks, Trump’s new global tariffs have since come into effect at 10 per cent after the Supreme Court blocked many of his sweeping import taxes last week.

Kenya’s Trade and Investment Ministry yesterday said the parities at the Washington talks reaffirmed their strong strategic political, diplomatic and economic partnership, supported by steady growth in bilateral trade over the past five years and increasing flows of high-impact US investments into Kenya.

The parties exchanged views on securing the gains made under AGOA, which has been extended up to end of 2026.

“They underscored the importance of formalising a new agreement that will provide certainty and predictability for businesses and investors, while ensuring long-term economic stability and growth,” Investments, Trade and Industry CS Lee Kinyanjui said in a statement.

The meeting also noted the continued expansion of trade in services across sectors including tourism, digital services, transport, and financial services.

In 2025, the US was Kenya’s second-largest export destination globally, while Kenya remained the U S’s eighth trading partner in Africa.

Total trade in goods and services between the two countries reached an estimated $3.3 billion (Sh425.4 billion) in 2024, representing an 18 per cent increase from 2023.

Kenyan exports to the US stood at $737.1 million (Sh95billion), while US exports to Kenya rose to $ 771.3 million (Sh99.4 billion).

Key drivers of this growth included apparel and accessories, high-value agricultural and horticultural products such as coffee, macadamia nuts, tea and cut flowers.

Total services trade was valued at $1.8 billion (Sh232 billion) with Kenya exporting $972 million (Sh125.3 billion) in services to the US, against $781 million (Sh100.7 billion) in imports, resulting in a $192 million (Sh24.7 billion) services trade surplus for Kenya.

“Both countries expressed satisfaction with the deliberations over the three days and look forward to continued engagement,” Kinyanjui said.

 

by MARTIN MWITA

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