Just days before US President-elect Donald Trump takes office, Kenya has expressed confidence it will reach the much-awaited trade agreement with the US. This is amid fears the deal will break down when Trump takes office next week.
However, the Principal Secretary for Trade, Alfred K’Ombudo, has remained adamant that Kenya will seal the deal in the coming months. “The relationship between Kenya and the US transcends administrations,” K’Ombudo said in an interview with Bloomberg on Friday.
He added, “We have a very strong history of informal trade and investment cooperation, and we do expect that we should pick up these discussions over the next few months.”
Kenya has been locked in trade negotiations with the US, which could see the country ink a deal similar to the European Union (EU) agreement or that reached with the United Arab Emirates (UAE) this week.
Principal Secretary for Trade, Alfred K’Ombudo, speaking during a discussion with Kisumu County leadership, January 10, 2025.
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K’Ombudo
The Strategic Trade and Investment Partnership (STIP) includes multiple key areas such as agriculture, sanitary measures, customs procedures, climate change action, and digital trade regulations.
The deal aims to create an alternative for Kenya, as the African Growth and Opportunity Act (AGOA) expires in September 2025. AGOA allows Kenya duty-free access to the US market for over 1,800 products.
Kenya and the US have conducted eight rounds of negotiations on STIP, with the eighth round taking place in Washington, DC, from mid- to late-September 2024.
As part of the deal, both parties have agreed on provisions to prevent and combat bribery and other forms of corruption. Additionally, agreements have been reached to empower micro, small, and medium-sized enterprises (MSMEs) in both economies, facilitating their participation in trade.
Provisions have also been established to ensure that service suppliers are treated fairly and transparently. The first tranche of agricultural text has also been agreed upon, focusing on facilitating agricultural trade and advancing food security.
Despite the progress, several areas remain under negotiation. Discussions are ongoing to ensure efficient customs procedures and enhance cooperation on enforcement.
Negotiations continue to promote workers’ rights and protections. Both sides are working towards advancing and supporting environmental and climate change goals within the partnership. Efforts are also being made to provide citizens, traders, and other interested parties with greater transparency about regulatory processes.
In 2022, Kenya’s total exports to the U.S. reached $892 million (about Ksh115.5 billion in the current exchange rates), with a substantial portion benefiting from AGOA’s duty-free provisions.
However, in 2023, there was a slight decline in AGOA-related exports, totaling $510 million (about Ksh66 billion), down from $517 million (about Ksh66.95 billion) in 2022.
US Trade Representative and Ambassador Katherine Tai with President William Ruto at State house Nairobi on July 19, 2023
PCS