US-Kenya Trade Engagements-September 2022

The United States has overtaken Uganda to become the largest market for Kenyan goods. According to Kenya National Bureau of Statistics (KNBS), Kenya’s exports to the US grew by 47 percent to KES. 38.8 billion in the first half of the year, ending Uganda’s 10-year dominance as the leading export destination for Kenya-made goods. Selected indicators under the EPZ garment and apparel sub-sector reported significant growth.

Trade with US is expected to grow in the coming years with Kenya currently seeking a placeholder strategic trade and investment partnership (STIP) with the United States as negotiations for a fully-fledged free trade agreement (FTA) continue ahead of the expiry of the Africa Growth and Opportunity Act (AGOA) in 2025. The new government is expected to continue the bilateral engagements in October 2022 with the aim of providing a roadmap for engagement on the 10 key priority areas of collaboration including agriculture, anti-corruption, digital economy, environment, climate change, transparency, good regulatory practices, MSMEs, workers’ rights and youth and women participation. Once fully implemented, the partnership will create certainty and attract long-term, capital-intensive investments from the United States.