Why Trump is resetting Biden's-era trade talks with Kenya

Kenya and the US are set to start negotiations on a new trade agreement as the country seeks to secure billions earned in exporting goods to the US as uncertainty clouds the extension of the African Growth and Opportunity Act (Agoa), which allows duty free entry of certain goods from African countries to the American market.

The two economies appear to be abandoning negotiations on the Strategic Investment and Trade Partnership (STIP) that had taken place for over two years during former President Joe Biden’s administration. They had, however, not signed a deal by the time Biden left office.

President Donald Trump’ administration appears not keen to conclude the STIP negotiations, with Kenya’s Trade ministry saying teams from the two countries are now set to start negotiation on a new pact. 

Trade, Industry and Investment Cabinet Secretary Lee Kinyanjui said Kenya is looking to start talks on a reciprocal trade agreement, which he said would be critical in securing continued access for Kenyan goods to the US. This is even as the expiry of Agoa in September 30 this year inches closer, with speculations that the Trump administration may not renew the Act.

“Kenya is deeply interested in the commencement of formal negotiations with the US government. A reciprocal trade agreement is crucial for securing long-term access to the US market for Kenyan products and will provide the stability needed to unlock new investments,” said Kinyanjui in a statement Wednesday.

“A number of US firms have expressed strong interest in establishing or expanding their operations in Kenya and this framework will be a key enabler for that growth.”

Kinyanjui issued a statement following a meeting with US Trade Representative Jamieson Greer in Washington DC.

The Ministry termed the meeting as marking a significant step towards a reciprocal trade pact between Kenya and the US. 

It is yet to be seen the direction that the talks will take but in the statement issued by Kenya’s Trade and Industry Ministry, Greer hinted at the US pursuing Trump’s America first strategy.