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In a bid to secure continued market access for Kenyan goods, the government is actively pursuing the extension of the African Growth and Opportunity Act (AGOA) beyond 2025. The optimism surrounding this initiative has been bolstered by the recent approval from the US Congress, which has indicated the possibility of extending the AGOA framework by an additional 16 years. This extension would ensure that Kenyan firms operating within the Export Processing Zones (EPZ) can maintain their quota-free and duty-free access to the US market.
The Ministry of Industrialization, Trade, and Enterprise Development is deeply engaged in the ongoing Strategic Trade and Investment Partnership (STIP) talks with the United States. These negotiations aim to enhance trade relations and improve market access for Kenyan products in the US, thereby fostering economic growth and development.
In the past six months, the EPZ program has seen significant growth, with 17 new enterprises joining and four new private zones being gazetted. This influx has injected investment capital valued at Ksh. 13.8 billion, created 3,143 jobs for Kenyans, and generated exports worth Ksh. 58 billion. This impressive performance underscores the potential for continued economic expansion.
With these positive developments, the Ministry of Industrialization, Trade, and Enterprise Development (MITI) is confident in achieving its ambitious targets. The ministry aims to attract investments worth USD 10 billion over the next five years and achieve a 15% growth in manufacturing by 2025, with an eventual target of 30% growth by 2030.
These efforts align with Kenya’s broader economic goals of industrialization and increased global trade presence. The successful extension of AGOA and the outcomes of the STIP negotiations are poised to play a crucial role in driving Kenya’s economic transformation and ensuring sustainable development.
The Ministry remains committed to fostering a conducive environment for investment and trade, reinforcing Kenya’s position as a competitive player in the global market
