The US is removing South Africa and Rwanda from AGOA: what it means for Kenya's duty-free exports
From 1 January 2027, South Africa and Rwanda will lose duty-free access to the US under AGOA. Kenya keeps its access, and AGOA now runs to December 2028. Here is why the two were cut, and the lessons for Kenyan exporters.
On Monday 2 November 2026, the US Trade Representative announced that President Trump intends to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), the scheme that lets eligible African countries sell thousands of products to the US without import duty. The change takes effect on 1 January 2027.
Why the two countries were cut
| Country | What the US has said or done |
|---|---|
| South Africa | The US Trade Representative said the countries failed AGOA's criteria, citing trade barriers and threats to US foreign-policy interests. The administration objects to South Africa's Black economic empowerment rules for US businesses, a land expropriation law, its criticism of Israel and its ties with Iran. South Africa denies the accusations and says it will not "surrender its sovereignty". It is the biggest AGOA exporter to the US. |
| Rwanda | No specific reason was given. The week before, the US sanctioned Rwanda's defence ministry over its support for the M23 rebels in eastern DR Congo. |
Countries have been removed before and later reinstated. Under the previous US administration, Burkina Faso, Gabon and Niger were removed after coups, and Uganda over its anti-gay law.
What it means for Kenya
- Kenya's access continues. Kenyan clothing and other goods keep entering the US duty-free. Kenya exported about US$788.6 million under AGOA in 2025, and the textile and apparel sector supports more than 66,000 direct jobs.
- A possible opening. US buyers sourcing from South Africa may look to other AGOA countries, including Kenya, though South Africa mostly exports different goods such as vehicles and metals.
- A warning. Eligibility is reviewed every year, and politics now matters as much as trade rules. Kenya's government wants exporters to diversify beyond clothing into processed farm goods, leather, pharmaceuticals and manufacturing, so the country is less exposed.
Meanwhile, in the global clothing trade
In Bangladesh, the world's second-largest garment exporter, about 670 factories closed on Monday after violent protests by workers demanding a minimum wage of 30,000 taka (about US$242) a month, more than double today's pay. Long disruptions there can push global brands to look for other suppliers.
Related: the US midterms and Kenya · youth jobs.
