Kenya halts China trade deal following pressure from the US

Kenya has delayed signing a trade agreement with China amid pressure from the United States, The Standard newspaper reported, citing unidentified people familiar with the matter.

The proposed pact still requires approval from the cabinet, parliament and President William Ruto, the report said.

The hesitation comes as Nairobi seeks to secure a renewal of its participation in the African Growth and Opportunity Act, the US trade program that for 25 years allowed qualifying Kenyan exports to enter the American market duty-free.

AGOA expired on Sept. 30, 2025, and a long-term successor has yet to be approved by the US Congress. Since the program lapsed, Kenya’s apparel exports to the US, worth more than $600 million annually, have been hit with tariffs of up to 28%.

The Kenya Association of Manufacturers has warned that more than 66,000 jobs, mainly in textiles and agriculture, could be lost if the uncertainty persists.

Kenyan policymakers had seen the prospective China deal as a buffer against the fallout. Under its reported terms, Beijing would scrap tariffs on Kenyan tea, coffee and avocados, providing an alternative market for key farm exports and easing pressure from rising costs in the US.

Kenya is now being forced to weigh closer trade ties with China against preserving preferential access to the American market, the newspaper said.