Kenya has postponed the signing of a trade agreement with China following pressure from the United States, according to Business Insider Africa. The proposed agreement is yet to receive approval from Kenya’s cabinet, parliament, and President William Ruto.
The delay comes as Nairobi focuses on securing a renewal of its eligibility under the African Growth and Opportunity Act (AGOA), a U.S. trade program that has for 25 years allowed Kenyan goods to enter the American market duty-free.
AGOA expired on September 30, 2025, and a long-term replacement has not yet been approved by the U.S. Congress. Since the program lapsed, Kenyan apparel exports to the U.S., valued at more than $600 million annually, have been subjected to tariffs of up to 28%, significantly increasing costs for exporters.
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The Kenya Association of Manufacturers has warned that prolonged uncertainty could put more than 66,000 jobs at risk, particularly in the textile and agricultural sectors. Kenyan policymakers had viewed the prospective trade deal with China as a potential safeguard against these losses.
Under the reported terms of the agreement, China would remove tariffs on Kenyan tea, coffee, and avocados, offering alternative markets for key exports and easing pressure from rising costs in the U.S.
However, Kenya is now being forced to carefully balance deepening trade relations with China against preserving preferential access to the American market, highlighting the growing geopolitical and economic tensions shaping the country’s trade strategy.
