The new administration’s focus on trade agreements to which Kenya is a party to and the implications for industries such as agriculture, textile and apparel

President Ruto’s administration has indicated its commitment to leveraging Kenya’s trade relations with various countries in order to create opportunities for Kenyan citizens, businesses and investors. To this end, President Ruto quite recently pledged to boost bilateral ties with EAC states including Somalia, through the implementation of the Joint Commission for Cooperation between the two countries, which will boost trade in miraa and fish. He also pledged to increase bilateral cooperation and trade with Uganda, the second largest export market of Kenyan goods, from which Kenya imports grain, milk, poultry products and sugar and exports animals, vegetable oil, machinery, steel and iron.

The new administration has also stated its commitment towards the full actualization of the AfCFTA for which Kenya has already began benefiting from under the trial phase. The trial phase allows Kenya to export products such as leather bags, sisal Fibre, avocadoes and fresh produce to African countries in different economic blocs at preferential rates.

Additionally, the new administration is looking to strengthen its ties with the United States, the largest export market of Kenyan goods. Kenya currently enjoys substantial duty-free access to the US market through the Africa Growth and Opportunity Act (AGOA), though the same is set to expire in September 2025. The main products that were exported to the US in 2021 included apparel, macadamia nuts, coffee, tea and titanium ores.

Some of the trade agreements to which Kenya is party to, and which the new administration has come out strongly in support of include those concluded under the EAC, AfCFTA and AGOA. From an analysis of the main products which Kenya trades in under these three main trading channels, we may conclude that the agriculture, textile and apparel industries will be positively impacted especially owing to greater market access.