This archive report was first published on 3 August 2020.
Kenya and the United States are currently negotiating a landmark free trade agreement that promises to boost trade and investment between the two countries.
At the heart of this deal are small and medium-sized enterprises (SMEs), which are expected to reap significant benefits from increased trade opportunities for both exports and imports.
According to Maxwell Okello, CEO of the American Chamber of Commerce in Kenya, SMEs will have the chance to become distributors of high-quality American products, while also benefiting from foreign direct investment and partnership opportunities with US companies.
“American companies wanting to do business in Kenya will be looking for partners with knowledge of the local market and supply chain systems; this is where SMEs come in,” Okello said.
Okello also sees the deal as a chance for SMEs to gain from the transfer of knowledge, expertise, and technology from American businesses, which will enhance the quality and competitiveness of their goods and services.
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.
Kenya is set to be the second African country to conclude a free trade agreement with the US, following Morocco in 2004.
The negotiations come ahead of the anticipated lapse of the African Growth and Opportunities Act (AGOA) on September 30, 2025.
