Economy

Exports under Agoa deal drop by Sh1.6 billion

epz

Workers at an EPZ factory in Nairobi. FILE PHOTO | NMG

Exports of duty-free goods to the US under the African Growth and Opportunity Act (Agoa) fell by Sh1.6 billion last year as capital investment dropped too.

The goods, mainly textile products, declined from Sh34.4 billion in 2016 to Sh32.8 billion last year. Reasons for the reduction were not given.

Capital investment declined by 14.1 per cent even as employment in the sub-sector grew by 3.5 per cent from 42,496 to 43,983.

“The value of exports reduced for a second consecutive year… with capital investment reducing to Sh14.2 billion in 2017,” noted the Economic Survey released on Wednesday.

However, Agoa exports accounted for 60 per cent of goods shipped to America.

READ: Kenya fails to lift US trade in Agoa plans

The Agoa programme allows Kenya and other Sub-Saharan African countries to export selected goods at preferential terms to the US, exempting them from paying tax.

Other exports to the US that recorded increased earnings included coffee, edible nuts and tea. The initiative, which was expected to end in 2015 after an initial deadline of September 2012, was extended by US lawmakers for another period of 10 years.