Kenya hopes to tap into the United Kingdom textile and clothing market market with improved access under the UK-Kenya Economic Partnership Agreement (EPA).
The push comes as manufacturers simultaneously explore opportunities in the European Union and China, while the two-year extension of the African Growth and Opportunity Act (AGOA) has restored certainty for exporters targeting the lucrative US market.
The UK-Kenya trade relationship has expanded significantly under the EPA, with total trade rising from £1.4 billion (about Sh245 billion) in 2023 to £2.1 billion (about Sh358 billion) in 2025, according to the Kenya Investment Authority (InvestKenya).
InvestKenya said the apparel market presents particularly strong potential, noting that the UK is Kenya’s 12th-largest export destination for apparel, yet Kenyan products account for only an average 0.6 per cent of UK imports of articles of apparel and clothing accessories.
“This highlights substantial room for growth,” InvestKenya said, adding that British consumers are increasingly seeking ethically produced and quality garments.
The opportunity is also expected to create demand for bank financing, trade finance, working capital, foreign exchange services, while driving growth in manufacturing and job creation as manufacturers scale production and pursue new buyers.
InvestKenya is working with the Export Processing Zones Authority (EPZA) and other partners to sensitise textile and apparel manufacturers on the Rules of Origin under the UK-Kenya EPA.
Understanding and complying with these requirements is critical for manufacturers seeking to secure preferential access to the British market.
The agreement, signed in December 2020 and fully ratified, provides Kenyan goods with duty-free and quota-free access to the UK market following Britain’s exit from the European Union.
It mainly covers trade in goods, agriculture, fisheries and economic development cooperation, while allowing Kenya to gradually reduce tariffs on selected UK imports and protect sensitive sectors.
The opportunity has been strengthened further by the extension of AGOA, which guarantees eligible Kenyan exporters duty-free access to the US market through December 31, 2028.
The US market remains particularly important for Kenya’s apparel industry, which accounts for about 70 per cent of the country’s exports to America.
Apparel exports under AGOA increased 19 per cent to Sh60.6 billion in 2024 from Sh50.8 billion in 2023, according to the Kenya National Bureau of Statistics.
The sector supports more than 66,000 direct jobs, largely through factories operating in EPZs.
The extension also retains the third-country fabric provision, allowing Kenyan manufacturers to source yarn and fabric from outside Africa, make garments locally and export them to the US duty-free.
With the UK, US, EU and Chinese markets offering different opportunities, manufacturers are increasingly being encouraged to diversify rather than depend on a single export destination.
The additional two years of AGOA certainty are also expected to encourage factories to invest in machinery, expand capacity and create jobs.
The government is urging businesses to use the expanded market access to increase production, diversify exports and attract fresh investment into manufacturing.
“The private sector should accelerate production, invest boldly, and take full advantage of preferential access to the world’s consumer market,” Investment CS Lee Kinyanjui said.
