Kenya’s Textile Industry on Edge as AGOA Deadline Looms

Kenya's textile industry faces uncertainty as the African Growth and Opportunity Act (AGOA) agreement with the US nears expiration. The deal, crucial for 16,000 workers, grants duty-free access to US markets. Textile manufacturer Pankaj Bedi stresses AGOA's role in keeping African goods competitive amid US tariff shifts.

In Nairobi, Kenya's textile sector braces for turbulence. As the duty-free trade agreement under the African Growth and Opportunity Act (AGOA) with the United States approaches expiry, concern mounts among 16,000 workers at risk. The outcome of this deal will significantly impact Kenya's garment industry and broader economic ties.

The United Aryan factory, a key player in the industry, faces uncertainty should AGOA not be renewed. Factory founder, Pankaj Bedi, voices concerns over African goods' competitiveness without duty-free access to the US market. President Donald Trump’s tariff policies also add to the mix of anxieties faced by the sector.

Economists and government officials stress the importance of AGOA, which has led to substantial job creation in Africa. However, the re-negotiation of trade terms could strain diplomacy, urging stakeholders to prepare for alternative trade avenues like the African Continental Free Trade Area. As negotiations continue, the factory workers remain hopeful for an extended deal.

(With inputs from agencies.)