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Kenya is racing against time to secure a long-term trade deal with the US as the African Growth and Opportunity Act (AGOA) expiry date fast approaches.
Trade and Investments CS Lee Kinyanjui is leading a delegation in Washington to advance strategic talks to secure trade exports ahead of the AGOA expiry in September.
A statement by the Ministry of Trade and Investments said Kinyanjui, who is accompanied by Trade PS Regina Ombam, will meet senior US trade officials and the American private sector through the US Chamber of Commerce, in Kenya’s bid to enhance trade and investment relations.
“The central focus of the discussions is securing Kenya's long-term trade and investment interests, with particular attention to safeguarding Kenya's exports beyond the expiry of AGOA and addressing tariff measures impacting our broader export portfolio.
“Kenya and the United States enjoy historic relations built on mutual benefit. This visit provides an important opportunity to deepen those ties while creating new pathways for business and investment on both sides,” the statement added.
Foreign Affairs CS Musalia Mudavadi last week said if the US will not renew AGOA for African states, each country will have to initiate bilateral talks.
However, the push is coming at a time diplomatic ties with the US are deteriorating over close ties with China and human rights violations.
Although the Trade ministry said interest from US companies in Kenya continues to grow, the diplomatic relations have faced some headwinds in the recent past. The Kenya-US Strategic Trade and Investment Partnership negotiations, which were to be concluded in December 2023, have also delayed.
In response to the deepening ties with China, the US Senate is pushing to review Washington ties with Nairobi, which was designated as a Major non-NATO ally in May 2024.
US Senator James Risch early this month proposed an amendment to the National Defense Authorization Act for Fiscal Year 2026, which seeks to review Kenya's designation within three months.
According to the Bill, the review will assess Kenya's foreign, military, security, and diplomatic policies such as its alignment with the US and its engagements with China, Russia and Iran, as well as agreements, or joint activities since June 24, 2024.
"A detailed description of the political and financial links of key political actors and institutions of Kenya with the People's Republic of China, the Russian Federation and Iran," it added.
President William Ruto has since responded, saying working with China is in the best interest for Kenya.
Addressing an investment roundtable last week, President Ruto said Kenya’s alliances and foreign policy are guided by economic interests. He said China has agreed to lift major tariffs on Kenyan exports, a move that makes trading with China more profitable.
“Some of our friends are complaining that we are doing too much trade with China. Honestly, when I sat with President Xi Jinping, I had a very candid conversation and I told him Kenya is importing Sh600 billion worth of products from China, yet we are only exporting Sh5 billion. That trade imbalance is serious,” Ruto said.
Mudavadi, however, told the National Assembly Committee on Regional Integration that ties with the US remain solid and that the proposal to review Kenya’s status as a major non-NATO ally did not originate from the US Executive but from the Senate.
“We have no issues with the United States. There is no challenge whatsoever. For the record, it is not the US government that has raised this matter it is not the Executive. This is a motion from a member of the Senate,” Mudavadi said.
However, Ruto administration has also faced criticism from the US government over human rights violations, particularly following the June 25 demonstrations.
The 2024 Country Reports on Human Rights Practices: Kenya by the State Department said Kenya experienced deterioration in the human rights situation during the period under review.
“In response to nationwide protests in June and July, authorities reportedly committed numerous abuses, including unlawful killings, physical violence and arbitrary arrests and detentions.
“Significant human rights issues included credible reports of arbitrary or unlawful killings; disappearances; torture or cruel, inhuman or degrading treatment or punishment; arbitrary arrest or detention; transnational repression against individuals in another country; serious restrictions on freedom of expression and media freedom ... ” the report released on August 12 read.
The bilateral talks with the US were initiated in February 2020 by President Donald Trump following a meeting at the White House with then President Uhuru Kenyatta.
Under President Joe Biden’s administration the talks became known as a strategic trade and investment partnership rather than a trade agreement.
The agreement seeks to increase investments, promoting sustainable and inclusive economic growth, benefiting workers, consumers and businesses (including micro, small and medium-sized enterprises); and supporting African regional economic integration.
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