AGOA trade preference compliance matters for Kenyan exporters again because the legal position changed on 2 September 2026. The African Growth and Opportunity Act lapsed on 30 September 2025, was reauthorised to 31 December 2026 on 3 February 2026, and was then extended to 31 December 2028 when the President signed H.R. 6500. Exporters now plan against a December 2028 horizon, while the tariff picture around AGOA keeps moving.
AGOA trade preference compliance: the current legal status
Section 2008 of H.R. 6500, the Continuing Appropriations and Extensions Act, 2027, replaces 2026 with 2028 in section 112(g) of AGOA and in section 506B of the Trade Act of 1974. It also amends the apparel provisions in AGOA section 112(b)(3) and 112(c)(1) to the same end date, and replaces the earlier “23 succeeding 1-year periods” in section 112(b)(3)(A)(i) with each succeeding one-year period until 31 December 2028. The White House recorded the signing on 2 September 2026.
The funding provisions of that law run only to 11 December 2026 (section 106(3) of Division A). Section 2008 changes the dates in the AGOA statute itself, and we read it as not tied to that funding period, but confirm this with customs counsel before you commit to long contracts.
The earlier reauthorisation was H.R. 7148, the Consolidated Appropriations Act, 2026, signed on 3 February 2026. USTR’s statement said duty-free treatment ran to 31 December 2026 and applied retroactively from 30 September 2025, and that USTR would work with Congress to modernise the programme. For exporters, a December 2026 cliff has become a December 2028 one. Anything that runs past 31 December 2028 still carries renewal risk.
Refunds for the lapse period
US Customs and Border Protection (CBP) guidance in CSMS message 68987884 of 18 June 2026 covers refunds for eligible entries made between 1 October 2025 and 3 February 2026. It limits refunds to Column 1 ad valorem duties, with no interest, and excludes merchandise processing fees, other duties and goods subject to Section 232 duties. The route depended on the entry’s status:
- unliquidated entries: a post-summary correction with an accelerated liquidation request;
- liquidated entries within the protest period: a protest, with a certificate of origin and a costed bill of materials;
- liquidated entries past the protest period: a written request through the ACE Document Image System.
CBP stated that all of these had to be filed by 2 August 2026 and that late filings would be denied. That date has passed. If your US importer did not file, check with them whether a claim was made and whether CBP has since extended or reopened the window. We have not found a later notice, so treat any unclaimed refund as at risk.
The third-country fabric rule
Kenya’s apparel sector depends heavily on the rule that lets apparel made in eligible lesser developed sub-Saharan countries qualify for duty-free treatment even where the yarn and fabric come from outside AGOA countries. Section 2008 carries those provisions to 2028. The mechanics change between reauthorisations, so manufacturers relying on the rule should confirm the current text with customs counsel.
AGOA does not override other US tariffs
AGOA eligibility is necessary but not sufficient for a duty-free entry. In Learning Resources, Inc. v. Trump, decided on 20 February 2026, the US Supreme Court held that the International Emergency Economic Powers Act does not authorise tariffs. A temporary global tariff under section 122 of the Trade Act of 1974, which is limited by statute to 150 days, followed. On 23 July 2026 USTR announced Section 301 action against 60 economies for failing to ban imports made with forced labour, with duties applying to goods entered on or after 12:01 a.m. Eastern time on 24 July 2026. USTR’s press release states rates of 10% for economies with a forced labour import ban or a commitment to one, and 12.5% for the other investigated economies.
Kenya is not named in the notice initiating those investigations, which lists the economies under investigation. The African economies named are Algeria, Angola, Egypt, Libya, Morocco, Nigeria and South Africa. On that reading the Section 301 duty does not apply to Kenyan goods. The position has changed repeatedly this year, so confirm the treatment of your product and entry date with your US importer or customs broker before you price a shipment.
Eligibility is conditional
AGOA eligibility is reviewed each year and can be withdrawn. USTR’s Federal Register notice for the 26th annual review, covering calendar year 2027 (docket USTR-2026-0298), was scheduled for publication on 30 June 2026, with a public hearing on 23 July 2026. It lists Kenya among the 33 sub-Saharan African countries designated as beneficiaries for 2026. Exporters building a long-term strategy around AGOA should track this annual review alongside the reauthorisation question.
What to verify before every shipment
AGOA trade preference compliance is not a one-time check. Qualification depends on the rules of origin for each tariff line, so a change of fabric or component supplier can change whether a shipment still qualifies even when your company is eligible. Confirm the Harmonized Tariff Schedule classification of each product line before each shipment, and keep certificates of origin and supporting records ready for US Customs. A business that cannot produce clean documentation can lose a refund or a preference it was entitled to because it cannot prove the claim.
Planning for a lapse after 2028
If Congress does not act again before 31 December 2028, Kenyan exporters could face an abrupt lapse like the one in 2025 and 2026, without any guarantee of retroactive relief. For apparel and textile exporters, tariff exposure would move to standard Most Favoured Nation rates plus any other applicable US tariff. Model your landed cost under a no-AGOA scenario now, and use it in pricing, contract terms with US buyers and investment decisions whose payback runs past 2028. Diversifying toward the EU, or deeper intra-African trade, reduces dependence on one preference programme. For related cross-border compliance, see our guide to the Strategic Goods Control Bill.
How We Can Help
Clay & Associates Advocates advises Kenyan exporters on trade preference compliance, supply contracts with US buyers, origin documentation and export market diversification. See our regulatory compliance practice and our corporate and commercial team. This article is general information and not legal advice, and US trade rules change quickly.
Sources: H.R. 6500 enrolled text (GovInfo); White House, H.R. 6500 signed into law; White House, H.R. 7148 signed into law; USTR statement on AGOA reauthorization, 3 February 2026; CBP CSMS on AGOA reauthorization and refunds; USTR AGOA annual review notice, calendar year 2027; USTR Section 301 forced labor action, 23 July 2026; USTR Section 301 forced labor notice.
Frequently asked questions
Does AGOA still apply to Kenyan exports?
Yes. After the lapse from 30 September 2025, AGOA was reauthorised to 31 December 2026 and then extended to 31 December 2028 by H.R. 6500, signed on 2 September 2026.
Can I still claim a refund for duty paid during the lapse?
CBP set 2 August 2026 as the deadline for post-summary corrections, protests and written requests, and said late requests would be denied. Ask your importer of record whether a claim was filed.
Does AGOA protect me from the new Section 301 tariffs?
Kenya is not named among the economies under the Section 301 forced labour investigations, so the duty should not apply to Kenyan goods. That could change, so check each product and entry date.
What happens after 2028?
AGOA is not permanent. Without a further extension, Kenyan goods would face standard rates, so build that scenario into contracts and investment decisions.
Need advice on your own matter?
Tell us what you are dealing with. You will know what it involves and what it costs before you commit.
This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
