Kenya seeks to diversify exports to US under Agoa

Kenya will diversify its exports to the US away from textiles under the Agoa preferential trade pact as the government moves to ensure compliance among traders and reduction in spoilage of exported perishables.

The Ministry of Industrialisation and Enterprise Development, the Export Promotion Council (EPC) and the US Embassy plan to work jointly towards easing barriers that hinder diversification by local entrepreneurs.

The African Growth and Opportunity Act (Agoa) programme allows Kenya and other sub Sahara African countries to export about 6,400 goods to the US tax-free, but Nairobi’s sales have been limited to textiles, which account for over 80 per cent of total exports.

“We have not fully taken aantage of the Agoa window and thus the need to redesign our policies in order to diversify our exports portfolio,” said Industrialisation secretary Adan Mohamed.

Other goods that enjoy tax-free access to the American market include coffee, footwear, bags, insecticides, live poultry, potatoes, vegetablesfats, fruits and tomatoes. Others are barley, boneless meat, rice, milk, beans, cheese and sunflower seeds.

READ: EAC pushes for long-term trade pact with the US to replace Agoa