Kenyan exporters ramped up apparel exports to the United States in the six months to the expiry of duty free access, blunting the short-term impact of the 10 percent tariff introduced by President Donald Trump.

The International Monetary Fund (IMF) has captured an increase in apparel exports from Kenya to the US between April and September last year, cushioning the firms in the four months of the stay of the tariffs.

President Trump in April last year announced the imposition of tariffs on 180 countries including Kenya, with duty taking effect at end of September when the Africa Growth and Opportunity Act (Agoa) expired.

In February, Washington gave a one-year extension of its preferential trade programme for Africa, delivering a short-lived reprieve for the continent.

But before the US U-turn, local apparel manufacturers targeting Americans with brands like Levis and Gap ramped up production and sale in the months to September, says the IMF.

“Textile exporters such as Lesotho and Kenya recorded higher exports, likely reflecting frontloading ahead of the anticipated Agoa expiration in the end of September, suggesting that longer-term effects may not be fully visible,” the IMF said in its Sub-Saharan Africa economic outlook report published last week.

Enacted in 2000, Agoa offers duty-free and quota-free access to the U.S. market to thousands of products from the 32 eligible African nations.

Data from the Kenya National Bureau of Statistics (KNBS) showed a steady climb in US exports to the US in six months following the announcement the tariffs on April 1, 2025, which was dubbed ‘Liberation Day’ by President Trump, mirroring IMF’s observation of a ramp up.

Overall exports from Kenya to the US rose through the first three quarters of 2025, moving from Sh18.9 billion between January and March to Sh19.5 billion in the next three months to June and Sh21.5 billion in the quarter to September.

Read: How US rivalry with Russia, China gifted exporters Agoa extension boost

The data shows Kenya exported cotton and man-made trousers valued Sh7.39 billion in April-September 2025 period, representing a 21.44 percent jump compared with Sh6.08 billion in a similar period a year earlier. The data does not give the entire apparel shipments to the US.

Kenya was among 180 countries targeted with the US tariffs because its policies and regulations were cited as trade barriers for US investors in a report compiled by the US Trade Representative (USTR).

The hurdles identified included a 35 percent tariff on second-hand clothes, corruption and a series of temporary tax waivers meant to curb rises in domestic food prices.

The trade barriers included tariff rates and non-tariff barriers ranging from burdensome food safety regulations to renewable energy requirements and public procurement rules.

“Among the imports that are impacted by the 35 percent fourth tariff band are US exports of second-hand clothing and environmentally cleaner cooking products. Many textiles and agricultural products are classified as ‘sensitive items’ under the EAC, and as a result, are subject to ad valorem tariff rates above 35 percent,” the USTR report said.

Since 2000, certain African countries had duty-free access to the US market for a raft of goods including clothing and textiles, cocoa products and wine, as well as crude oil.

The access was tied to a number of conditions including free market policies, labour and human rights and political pluralism.

Agoa has long been viewed as an important tool of US soft power, especially in countering the growing influence of China and Russia in Africa.

Kenya mainly exports clothes to the US. The threats of 10 percent tariff forced the apparel firms to rev up production and hiring.

Firms operating in the Export Processing Zones (EPZs) tripled new hiring to 12,069 in the year ended June on the back of opening of new companies and growth in exports prior to the expiry of duty-free window for shipping goods to the US.

Data from the State Department of Trade shows the number of new workers in these economic zones surpassed the 8,000 that had been targeted for the review period.

“The achievement was mainly attributed to new firms, which continued to recruit as the production process advanced and also the expansion of the employment base by the existing enterprises,” said the department in disclosures to the Treasury.

Experts have warned of risks from the reliance of preferential market access, highlighting significant disruptions if the terms are taken away.

“The relief brought by this extension should not lull African countries into complacency. Agoa’s tenure of 25 years has shown that reliance on external trade preferences is inherently precarious. Its expiration caused disruptions to supply chains, loss of contracts and layoffs, emphasising the dangers of dependency,” Maurice Mwaniki and Corazon Ongoro, tax and customs consultants at PwC said in an opinion piece published by the Business Daily in February.

The Kenya Association of Manufacturers (KAM) estimates that Kenya has exported goods worth $13.3 billion (about Sh1.72 trillion) since Agoa took effect in 2000.

→ kmuiruri@ke.nationmedia.com

Follow our WhatsApp channel for the latest business and markets updates.