NAIROBI: In Nairobi, Kenya’s funds, the company that makes Levi’s and Wrangler trousers is in crisis. In a crowded, air-conditioned shop, plenty of sewing systems whirr. Staff also carry clothing to the US business on another ground. The United Aryan export control zone’s factory’s fate hangs in the balance, with roughly 16, 000 workers there. A duty-free industry deal between Kenya and the United States may disappear in September as a result of AGOA, or the African Growth and Opportunity Act. If the AGOA deal is not renewed, manufacturers may struggle to compete effectively in the US market, according to the company’s founder, Pankaj Bedi, because of the tough business climate in sub-Saharan Africa. Many African goods may no longer possess duty-free access to the US market without the introduction of AGOA, which is intended to benefit African countries that meet certain US anticipation in areas like governance and human rights. And they would be subject to the confusion of the Trump government’s world tax strategy. It’s a problem that exists throughout the globe. President of South Africa Cyril Ramaphosa stated to reporters following his Oval Office meeting with President Donald Trump that AGOA is “going to be further discussed… it is top of mind for them as properly” in the US presidency. Bedi claimed that if the AGOA deal is not extended, his company would lose. We are hoping that President Trump may complete it for a longer time frame this time around, he said, and then a long-term approach will be in place. The longest improvement has been in a century. In making his ball, Bedi stated that because of Asia’s huge and young workforce, he thinks Africa is the best option for sourcing there. According to the United Nations, 77 percent of people in sub-Saharan Africa are under 30. ” Africa will be the last frontier, and I believe the supply chain may actually switch,” he says. We can’t began manufacturing on the sun, according to Bedi. The state of Kenya did not comment on the agreement or explain why it might be in jeopardy. Wangari Muikia, an economist, claimed that the new US tariffs reflect a move toward “reviving American production,” which is in line with Trump’s goal to re-shore jobs, but that a decision to end AGOA could” strain diplomatic ties and weaken American soft energy.” The government of Africa has promoted AGOA as a significant source of employment. According to state data released in 2024, AGOA has created 66, 000 jobs in Kenya since the programme started in 2000. Kenya’s overall unemployment rate is 12.7 %, but that rate is 67 % for those under 35, which is a bigger problem for the majority of Africa’s booming young population. According to the US Department of Commerce, Kenya’s full exports under AGOA, which included agricultural products, clothing, and crafts, were worthwhile$ 510 million in 2023. United Aryan reported that it exports 8 million pants from Kenya to the US on average each year. However, some American governments and rulers have opposed AGOA’s problems. Yoweri Museveni, the president of Uganda, criticized the software after it was used to force him on about his homosexuality position in 2023. Martin Kimani, Kenya’s past ambassador to the United Nations, stated in an interview with The Associated Press that he believes AGOA’s uncertainty has had a negative impact on the economy. He claimed that a business regime’s regularity and integration into long-term production are its true measures. The tariffs and the agency’s future expire indicate that AGOA is not a reliable basis for American business development, according to the statement. According to scholar James Shikwati, founder and director of The Inter Region Economic Network, Kenya will need to look for alternative areas like the African Continental Free Trade Area to ensure tasks are no lost and companies continue to export goods if the AGOA offer isn’t extended. The lack of strong institutions that can resolve trade disputes and poor infrastructure that makes it cheap to transport goods are some of the shortcomings of the continental free trade area. Every trade partner will need to reassess its engagement with the US, according to Shikwati, citing the new trade-related policies adopted by the Trump administration. There is priority for those whose work might be impacted. Valdes Samora, a worker for United Aryan, hopes to ensure that jobs will not be lost after September and that the sewing machines will continue to run. The parents of nine, age 59, has worked for the business for 20 years. His spouse works there as well. In a nation where the minimum wage is$ 115, workers are paid an average of$ 200 per month. He said,” I never finished my education, but through this work I have been able to educate my children.”
