The United States and Kenya have committed to working together to conclude an agreement by the end of the year on an ambitious US-Kenya Strategic Trade and Investment Partnership. The partnership is designed to pursue high-standard commitments in multiple areas to increase investment, promote sustainable and inclusive economic growth, and support African regional economic integration.
“We believe bilateral trade and investment ties are the foundation of our joint prosperity,” US President Joe Biden said on a recent state visit.
“The African Growth and Opportunity Act (Agoa) is the cornerstone of the US trade relationship with Kenya and across sub-Saharan Africa, and we would welcome its timely reauthorisation. Agoa is about more than just trade: it supports policies to reduce poverty, combat corruption, and promote respect for human rights and workers’ rights. We believe that trade policies should foster inclusive and sustainable development, support regional integration, and ensure that all of our respective peoples – including and especially workers – benefit from the global economy,” he said.
He identified Kenya’s apparel sector as evidence of the power of this approach. “Since the passage of the Agoa in 2000, Kenya’s apparel sector has forged robust partnerships with local manufacturers and US buyers, and exports to the US have reached record levels and are now worth hundreds of millions of dollars annually. Ongoing investments by USAID and the Kenyan private sector are expected to generate an additional $250 million in apparel exports to the United States and create over 20 000 new jobs.”
Crucially, these investments diversified US supply chains and empowered Kenya’s apparel sector by developing domestic production of packaging, labelling, and other essential materials, he added.
The visit also marked the official launch of the ‘Kenya Urban Mobility and Growth Threshold Programme', with $60m in economic assistance through the US Government’s Millennium Challenge Corporation. The programme supports improvements in urban land use and strengthens the planning and preparation of a more integrated transport system, with investments in clean public transport and safer transport options for pedestrians, women and other underserved groups.
