NAIROBI: Kenya could increase its exports to the U.S by 50% under the African Growth and Opportunity Act (Agoa). The study which initiated last year seeks to enable East African Community member states including Kenya, to better utilise the trade platform.
As part of the plan, US businesses will invest about Sh10.2 billion in existing or new businesses in EAC countries in the next four years in what is expected to lead to the creation of 10,000 jobs in the region. “We are looking at increasing exports from the region to the US under Agoa by 50%. We are also looking to bring in $ 100 million in new investments to the region, which will create about 10,000 new jobs,” said Agoa Trade Advisor, USAid East Africa Trade Hub, Mr Finn Holm-Olsen.
During the forum attended by small business representatives, it emerged that a majority of Kenyan SMEs are missing out on the benefits of exporting to the US under Agoa due to lack of export market knowledge and information.
A directive by President Uhuru Kenyatta compelling the Industrialisation ministry to demystify the Agoa initiative through a sensitisation campaign targeting SMEs had begun bearing fruit.
To enhance access to credit and boost their capacity, Industrialisation Principal Secretary Wilson Songa said during the forum that plans were at an advanced stage for the creation of an SME fund to support small businesses in accessing credit. “This will happen very soon once the medium and small enterprises authority is de-linked from the ministry and becomes a fully-fledged authority.” said Mr Songa.
Experts have noted that despite the recent Agoa Extension and Enhancement Act of 2015 giving Kenya the opportunity to increase its volume of trade with the USA, Kenya has failed to reach its full potential.
In 2013, Kenya exported Sh8.9 billion worth of vegetable and food products to the US market. Kenya plans on increasing the annual exports margins from about Sh50 billion million to Sh100 billion by the time the extension has ending in 2025.
