By BUSINESS DAILY

More by this Author

The number of jobs created by the two-decade-old Growth and Opportunity Act (Agoa) agreement between Kenya and America has hit 66,260 ahead of the expiry of the trade deal.

The latest data shows the value of apparels exported from Kenya via Export Processing Zones (EPZ) under the pact hit a new high of Ksh54.1 billion ($395.76 million) last year, translating to a 10.8 percent rise from the Ksh41.6 billion ($304.32 million) realised in 2018.

The Kenya National Bureau of Statistics (KNBS) during the 12 months to December last year also show that capital investments injected in the sub-sector increased to Ksh24.9 billion ($182.15 million) from Ksh16.1 billion ($177.78 million) in 2018 with the number of employees engaged rising to 66,260 up from 46,248 half a decade ago.

Further, the number of enterprises marked a steady increase over the years to stand at 36 as of December, a 24.1 percent rise from the 22 recorded in 2018.

Read: Kenyan manufacturers lobby for Agoa extension

“Direct employment in the sub-sector increased significantly by 31.5 percent to 66,260 in 2022. The value of exports expanded from Ksh48.8 billion ($358 million) in 2021 to Ksh54.1 billion ($395.78 million) in 2022. The value of capital investment increased by 7.2 percent to Ksh24.9 billion in 2022,” reads the report.

Agoa, which is a legislative trade pact enacted by the US Congress in May 2000, allows accredited sub-Saharan countries to ship their exports to Washington without tariffs.

The treaty was initially intended to last 15 years from 2002 but was in 2015 extended by 10 years meaning its expiry comes in two years.

Kenyan manufacturers through their lobby association had in March appealed to the country’s trade ministry to forward a request to the Joe Biden-led administration seeking an extension of the deal for another 15 years arguing that uncertainty in its fate was costing the country billions of shillings in potential investments.