This archive report was first published on 8 July 2020.
July 8, 2020 - Nairobi, Kenya - The governments of Kenya and the United States have initiated talks for a historic Free Trade Agreement, marking a significant step towards strengthening trade and investment ties between the two nations.
Industrialization Cabinet Secretary Betty Maina emphasized that the agreement, the first of its kind in Sub-Saharan Africa, will provide continued market access for Kenyan goods to the expansive US market.
The proposed agreement aims to reduce trade barriers, including tariffs and import quotas, and increase trade between the two countries.
According to Maina, the Free Trade Agreement will be a milestone for Kenya-US partnership in trade and development cooperation, expanding trade and investment opportunities that will greatly benefit both countries.
Kenya's exports will retain duty and quota-free access to the US market under the deal, building on the gains achieved during the African Growth and Opportunities Act (AGOA) that enabled Kenya to diversify and increase the value of exports to the US market.
Between 2009 and 2019, the value of Kenya's exports to the US increased from Sh17.4 billion to Sh51.9 billion, with over 70 percent of these earnings coming from horticulture, apparels, and textiles.
The US has 14 FTAs with 20 countries worldwide, with Morocco being the first African country to conclude an agreement in 2004. Kenya will be the second African country upon successful conclusion of the negotiations.
The negotiations, led by Maina, will take place virtually over the next 12 months and come ahead of the anticipated lapse of the African Growth and Opportunities Act on September 30, 2025.
