US now Kenya's third largest export market
Monthly data released Friday show the US took up goods worth a cumulative Sh18.38 billion in the period compared to Sh14.12 billion as at June 2013, a 30.2 per cent increase.
The increase in exports to US is seen as a direct result of the Africa Growth Opportunity Act, a preferential trade agreement focused on textiles and apparels that was first signed in 2000. It since been renewed and expires on September 30, 2015.
AGOA allows for duty-free and quota-free treatment for eligible apparel articles made in eligible sub-Saharan African countries including Kenya.
“The poor conditions for workers in places such Bangladesh’s textile sector has prompted the US to shift eyes to countries like Kenya, just as Kenya was giving up and this was a huge relief,” Pradeep Paunrana, chairman of the Kenya Association of Manufacturers, told the Star yesterday.
“KAM is working with the Industrialisation ministry to revive the sector fully and this will create about 50,000 jobs over the next one year because it’s a labour-intensive industry.”
The US has displaced the UK and Tanzania, which are now placed fourth and fifth with Sh18.24 billion and Sh17.37 billion respectively.
“Kenya should look at opening more trade routes to the US and create favourable conditions for manufacturing. Direct flights to cities such as Atlanta could help boost flower and horticultural exports to the US,” said Paunrana, who is also chief executive of Athi River Mining Company.
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