How Kenya outwitted US, China to clinch dual trade deals

In a calculated display of economic statecraft, Kenya played the United States and China against each other last week, announcing it had secured pivotal trade concessions from both rival superpowers within a critical 48-hour window to protect its core exports and unlock new markets.

The near-simultaneous announcements — a US House vote to renew the vital African Growth and Opportunity Act (Agoa) on Monday, followed by Kenya’s confirmation of a landmark “early harvest” deal with China on Thursday last week, came after Nairobi strategically managed the timing of its disclosures to avoid antagonising either power, according to analysts and official statements.

The sequence, according to an analysis of the events and official statements, reveals a calculated effort by Kenyan trade and diplomatic officials to insulate Kenya’s economy from geopolitical fallout, ensuring the renewal of a US programme supporting over 330,000 local jobs before publicly cementing a deal with Beijing designed to tackle a massive trade deficit.

“Nairobi has just executed a masterclass in 21st-century non-alignment,” said Ian Njoroge, a Nairobi-based independent economist. “They read the room in Washington, understood the explicit anti-China framing of the new Agoa Bill, and choreographed their announcements to secure both prizes without appearing to choose sides. It’s pragmatic sovereignty in action.”

The delicate dance played out against a backdrop of acute economic pressure. Agoa, the cornerstone US trade preference programme for Sub-Saharan Africa, had lapsed on September 30, 2025. 

Since then, Kenyan apparel exporters—who shipped goods worth approximately Sh95.1 billion ($737.3 million) to the US in 2024—faced tariffs of up to 10 per cent, threatening an industry that directly employs over 80,000 people in Export Processing Zones (EPZ) and supports a further 250,000 indirect jobs.

Concurrently, Kenya had finalised negotiations with China in December 2025 on an “Early Harvest Arrangement” granting 98.2 per cent zero-duty access for Kenyan goods.

The deal is crucial for narrowing a lopsided trade relationship that saw Kenya import Sh729.2 billion ($4.44 billion) from China in 2024 while exporting only Sh33.1 billion ($202 million) goods to China.

Shifting geopolitics

The push for a swift zero-tariff deal with China last year came at a pivotal time for Kenyan exporters, as the future of Agoa was uncertain and threatening the duty-free status of Kenyan goods. Kenyan diplomats at the time framed the Chinese arrangement as a strategic buffer.

“We are seeing a lot of volatility in the trading arena,” Prime Cabinet Secretary Musalia Mudavadi said in September 2025, adding that in the face of shifting geopolitics, Africa required “predictable, reliable and consistent trade arrangements with its partners.”

Back to Agoa, the US legislative process set the pace. On Monday, January 12, the US House of Representatives passed H.R. 6500, the Agoa Extension Act, by a decisive 340-54 vote, clearing a path for a three-year renewal through 2028. 

The bill’s supporting documentation framed the extension explicitly as a tool to counter Chinese influence, stating Agoa is “one of our most valuable tools for securing our long-term economic and national security” against actors seeking to “monopolise” African supply chains.

Kenyan officials welcomed the vote the next day, Wednesday, January 14. Trade Cabinet Secretary Lee Kinyanjui issued a statement calling it a “critical milestone” that would end “uncertainty” and allow for “renewed confidence and expansion.” He made no mention of China.

Less than 24 hours later, on Thursday, January 15, the same ministry issued another statement from Kinyanjui, formally announcing the concluded preliminary agreement with China. 

The deal, he said, provides “98.2 per cent zero-duty market access for Kenyan goods,” a framework designed to benefit Kenya as a non-Least Developed Country and unlock “vast economic potential” for agricultural exporters.

Officially, Nairobi denies any tension. Foreign Affairs Principal Secretary Korir Sing’Oei had earlier dismissed reports of the China deal being shelved as “completely unfounded,” asserting Kenya sees “no tension” between pursuing market access in both the East and West.

Balancing the act

However, analysts and officials say the deliberate staggering of the announcements suggests a keen awareness of the political optics in Washington.

By first publicly celebrating the Agoa vote—a move that aligned with the US Congress’s stated goal of bolstering partnerships against Chinese influence—Kenya effectively provided reassurance to its American partners.

“Then, with the Agoa pathway secured, they could announce the China deal as a separate, sovereign economic decision, not a provocative pivot,” said Njoroge. “It mitigated the risk that hawkish US lawmakers would point to the China deal as evidence that Agoa beneficiaries were undermining US interests.”

 The US bill itself contains both a carrot and an implicit stick for Nairobi. Its “reliquidation” clause promises refunds for tariffs paid by Kenyan exporters since Agoa lapsed, a crucial financial lifeline for the apparel sector. Yet its underlying rhetoric places Kenya’s deepening ties with Beijing under heightened scrutiny. 

For Kenyan businesses, the dual deals offer complementary benefits. Agoa secures the existing, job-intensive textile export sector.

Business sentiment

The China agreement opens a new frontier for agricultural exports like coffee, tea and avocados, aiming to diversify the economy and reduce a chronic trade deficit.

“We want Kenya to clinch all the deals,” a large-scale flower farmer in Naivasha told The Financial Standard, capturing a widespread business sentiment. “Our flowers don’t care about politics; they just need a buyer.”

The challenge now shifts to implementation. The Agoa extension must still pass the US Senate and be signed by President Donald Trump. The China arrangement requires final domestic approvals and the signing of bilateral instruments.

Analysts caution that Kenya’s balancing act remains precarious. The shorter three-year Agoa extension is seen by some as a “holding pattern,” giving the US administration time to potentially push for stricter reforms or more explicit conditions in future.

“Kenya navigated this round brilliantly,” said Njoroge. “But the geopolitical tightrope only gets narrower. The true test will be managing the competing standards on debt, transparency, and alignment that come with these deals over the next three years.”

For now, in the halls of Kenya’s Ministry of Investments, Trade and Industry, there is a sense of a hurdle cleared, insiders said. 

 By mastering the calendar, Kenya bought itself time, jobs, and options—a rare trifecta in the high-stakes game of global trade diplomacy, said officials familiar with the strategy.