This archive report was first published on 8 July 2020.
Kenya has taken a significant step towards transforming its economy by launching talks to seal a free trade agreement with the United States. The move, announced on Wednesday, aims to secure trade and investment relations ahead of the lapse of the African Growth and Opportunity Act (Agoa) in 2025.
Trade Minister Betty Maina emphasized the importance of striking the bilateral trade agreement, stating that it would help Kenya capture a significant share of the US market for its key exports, including textiles, clothing, tea, coffee, and fish. According to Maina, if Kenya can capture just five percent of the US market for these products, it could increase its export revenue by more than two trillion shillings ($18.8 billion, 16.5 billion euros).
Kenya hopes to conclude the deal within 12 months, with an initial round of two weeks of talks set to begin on Thursday. The agreement would make Kenya the first country in sub-Saharan Africa to enter a free trade agreement with the United States.
However, critics argue that the deal would jeopardize agreements Kenya has with its east African neighbors, as well as a planned continent-wide free trade area. A letter signed by 27 NGOs and trade and rights groups across the continent warned that the deal would cripple Kenya's agriculture and manufacturing sectors and undermine efforts to increase intra-regional trade.
Interior Minister Fred Matiang'i dismissed the concerns, stating that the deal would 'strengthen, not weaken, our regional commitments.'
