(NAIROBI, KENYA) – Kenya’s Trade Ministry has promised to help exporters recover tariffs paid during the four month lapse of the United States African Growth and Opportunity Act trade pact. The move opens the door to a potential cash boost for manufacturers and agricultural exporters hit by higher duties.
The refunds are expected within 90 days once the proposed extension of Agoa to December 2028 is enacted. The Ministry of Investments, Trade and Industry said it will work directly with United States customs authorities to ensure eligible Kenyan firms reclaim duties paid between October 2025 and January 2026.
Cabinet Secretary Lee Kinyanjui said the retroactive refund clause in the Bill passed by the American Senate on 8 August would shield exporters from losses suffered when Agoa had expired before it was renewed through December 2026. He said the provision for retroactive duty refunds is highly encouraging. The Ministry will work closely with exporters to help them file requests with US Customs and Border Protection. The aim is to ensure all eligible duties paid during this period are refunded within the required 90 days.
The Agoa extension still faces a key final stage in Washington before Kenyan exporters can begin filing refund claims. The US Senate attached the extension to a broader stopgap government funding Bill on 8 August. The trade measure is now tied to legislation needed to prevent a federal government shutdown.
Congress must finalise the funding package before 30 September. This creates a high stakes deadline that could decide whether the refund mechanism becomes law. The Bill now moves to the House of Representatives. The House can either approve the Senate package or amend the Agoa provisions to better align with the Trump administration’s broader tariff agenda. Any changes would force negotiations between both chambers before the legislation can be sent to President Donald Trump for signature.
The promise offers rare relief for exporters that absorbed steep tariffs after Agoa lapsed on 30 September 2025. Kenyan shipments faced duties that had previously been waived under the preferential trade programme.
Between October 2025 and January 2026, the Kenya Association of Manufacturers said exports to the United States attracted tariffs of between 15 and 42 percent. The duties disrupted orders and squeezed margins. They included a 10 percent reciprocal tariff imposed by the Trump administration on Kenyan exports in August 2025. This added to the burden on apparel manufacturers and agricultural exporters.
Kenya has exported apparel, tea, coffee, macadamia nuts, fresh produce and other products to the United States duty free and quota free under Agoa since 2000. The programme is one of the country’s most important industrial and employment drivers.
The refund pledge matters for factories operating in export processing zones around Athi River and Thika. Agoa supported production in these areas underpins tens of thousands of jobs.
The latest Kenya National Bureau of Statistics Economic Survey shows Agoa accredited investments rose 10.4 percent to KES 42.3 billion in 2025. This is equal to about $261 million or £206 million. The growth came despite uncertainty over access to the United States market.
The number of enterprises operating under Agoa increased from 40 in 2024 to 44 in 2025. Employment jumped 22.8 percent to 82,026 workers.
Apparel exports to the United States fell 4.1 percent to KES 58.1 billion in 2025. This is equal to about $359 million or £283 million. The fall shows the disruption caused by the lapse in tariff preferences and weaker orders from American buyers.
Under the proposed rules, exporters would be reimbursed only for the exact value of eligible customs duties paid during the lapse period. The refunds would apply only to general ad valorem customs duties. They would not include interest payments, merchandise processing fees, anti dumping duties, countervailing duties or specialised reciprocal tariffs.
The ministry said extending Agoa through 2028 would restore certainty for manufacturers that had delayed investment decisions because of repeated short term renewals and uncertainty over market access. Kinyanjui said the extension will be a highly significant development for Kenya’s economy. It will provide predictability for manufacturers. He said renewed trade predictability through to 2028 aligns with Kenya’s commitment to supporting local manufacturers to increase production capacity and diversify the export portfolio.