Kenya has dismissed reports that it has suspended negotiations with China on a preferential trade agreement in favor of renewing access to the United States' African Growth and Opportunity Act, or AGOA, saying talks with China are ongoing and at an advanced stage.

The clarification followed a local media report that claimed Kenya had shelved discussions with China to implement zero-tariff exports to China under pressure from Washington, prioritizing efforts to regain duty-free access to the US market through AGOA.

China announced last year that it would grant zero tariffs to all 53 African countries with which China has diplomatic relations, including Kenya, aiming to expand African exports to China.

The report, citing unnamed sources, said the China talks were on hold pending approval from Kenya's Cabinet, Parliament and President William Ruto.

Kenya's Principal Secretary for Foreign Affairs Korir Sing'Oei rejected the claims, describing them as "misleading and unfounded".

"This report is completely unfounded," Sing'Oei said in a statement posted on X. He said Kenyan and Chinese negotiating teams concluded negotiations on an interim framework late last year, aimed at unlocking immediate trade benefits as talks continue on a broader economic partnership.

According to Sing'Oei, both sides have already exchanged tariff schedules and agreed on applicable rules of origin for products eligible for preferential treatment.

Kenya's Ministry of Investments, Trade and Industry also confirmed that substantial progress has been made in talks with China to implement the zero-tariff measure.

Monumental progression

"We are pleased to share that these engagements have resulted in a preliminary agreement that allows for 98.2 percent zero-duty market access for Kenyan goods," Lee Kinyanjui, cabinet secretary for the ministry, said in a statement released on Thursday. "This early harvest framework is a monumental progression that signifies China's commitment to strengthening our trade ties further."

The introduction of zero-duty access will unlock vast economic potential for Kenyan exporters, allowing diversification of the Kenyan export basket, especially in the agricultural sector, which is the mainstay of its economy, he said.

"This development is expected to generate considerable employment opportunities and bring tangible benefits to our economy," he said.

Kenya's clarification comes as the government intensifies diplomatic efforts to secure the renewal of AGOA, which expired on Sept 30, 2025.

Enacted in 2000, the program allowed qualifying goods from eligible African countries to enter the US market duty-free and became a key pillar of US-Africa trade over its 25-year lifespan.

Sing'Oei stressed that Kenya's engagement with China does not conflict with its pursuit of renewed AGOA access or closer trade ties with the United States.

The government said it is pursuing a diversified trade strategy, seeking to expand market access with multiple partners to cushion the economy against external shocks and strengthen long-term export competitiveness.

China's grant of zero tariffs to African countries has been widely welcomed in Africa.

James Shikwati, founder and executive director of the Kenyan think tank Inter Region Economic Network, welcomed China's move, saying it opens significant opportunities for African exporters to access the world's largest consumer market duty-free.

He said the policy signals a deepening of South-South cooperation that could help rebalance global trade dynamics by creating more opportunities for Africa.

"It offers Africa strategic leverage and stronger bargaining power in its global trade negotiations with both existing and emerging partners," Shikwati said.

sharon@chinadailyafrica.com