Kenya Suspends Trade Agreement with China
Written by Black Hot Fire Network Team on January 12, 2026
Kenya has delayed signing a trade agreement with China. The delay comes as the nation seeks to renew its participation in the African Growth and Opportunity Act (AGOA), a U.S. trade program.
AGOA lapse hits exports
AGOA expired on September 30, 2025, and a long-term successor has yet to be approved by the U.S. Congress. Since the program’s expiration, Kenya’s apparel exports to the U.S., valued at more than $600 million annually, have faced tariffs of up to 28%.
The Kenya Association of Manufacturers has cautioned that over 66,000 jobs, primarily in textiles and agriculture, could be lost if the uncertainty continues.
Kenyan policymakers had initially viewed the potential China deal as a safeguard against the consequences of AGOA’s lapse. The proposed agreement would have eliminated tariffs on Kenyan tea, coffee, and avocados, offering an alternative market for key agricultural exports and potentially mitigating rising costs in the U.S.
Kenya is now balancing closer trade relations with China against maintaining preferential access to the American market. The trade agreement still requires approval from the Kenyan cabinet, parliament, and President William Ruto.
