Kenya’s China Trade Deal Stalls Amid US Pressure, Threatening Key Exports
Kenya's tariff-free export agreement with China remains in limbo after Washington intervened. The proposed deal WOULD have eliminated duties on Kenyan agricultural goods like tea, coffee, and avocados—a critical lifeline after the expiration of the African Growth and Opportunity Act.
Apparel exporters face immediate consequences. With AGOA's expiration, Kenyan textiles now attract 28% tariffs in US markets, jeopardizing $600 million in annual trade. The Kenya Association of Manufacturers warns 66,000 textile and farm workers risk unemployment without resolution.
Geopolitical tensions surface as Kenya balances relationships. Washington explicitly linked the China deal to Kenya's potential exclusion from the US-backed Strategic Trade and Investment Partnership. Beijing holds more Kenyan debt than any other nation, complicating Nairobi's calculus.
