Kenya Rejects Claims of Strained Ties with China

Foreign Affairs Principal Secretary Korir Sing’Oei has refuted reports suggesting a strained trade relationship between Kenya and China. He described recent claims as “completely unfounded” and highlighted ongoing negotiations for a trade agreement.

The developments occur amidst renewed discussions surrounding the African Growth and Opportunity Act (AGOA) and Kenya’s efforts to diversify its trade partnerships.

Trade Agreement Negotiations

Kenyan and Chinese teams concluded negotiations on December 19, 2025, for an Early Harvest Arrangement under a broader Agreement on Economic Partnership for Shared Development. This arrangement serves as an interim measure to facilitate preferential trade while a full economic partnership agreement is being negotiated.

The agreement allows both countries to specify tariff schedules and rules of origin, clarifying which products qualify for preferential treatment.

Addressing Concerns Regarding AGOA and US Trade

Sing’Oei stated that the market access deal with China does not conflict with Kenya’s ongoing efforts to secure AGOA re-authorization or a separate Bilateral Trade Agreement with the United States.

Reported Delays and US Pressure

Recent reports from The Standard indicated that Kenya was delaying the China trade deal due to pressure from the United States. These reports suggested the pact required approval from the cabinet, parliament, and President William Ruto before implementation.

Impact of AGOA Expiration

The expiration of AGOA on September 30, 2025, has resulted in Kenyan apparel exports to the US facing tariffs of up to 28 per cent. These exports were previously valued at over Ksh77 billion ($600 million) annually.

The Kenya Association of Manufacturers has cautioned that continued uncertainty could threaten over 66,000 jobs, particularly in the textiles and agriculture sectors.

China Deal as a Safeguard

Kenya had considered the prospective China deal as a safeguard, with reports suggesting Beijing would remove tariffs on tea, coffee, and avocado exports. This arrangement would provide an alternative market for key agricultural products and reduce reliance on US markets during AGOA negotiations.

US House Approves AGOA Extension

The United States House of Representatives voted to extend the AGOA pact until 2028 on Monday, January 12. The vote was 340 in favor and 54 against. The bill now proceeds to the Senate for consideration before being signed into law. The act aims to provide duty-free access to the U.S. market for eligible African countries and products.