A Kenyan textile manufacturer plans to terminate employment for 1,000 workers after American trade legislation expires on September 30. United Aryan factory produces denim clothing for major US brands under the African Growth and Opportunity Act. Chief Executive Pankaj Bedi said Trump administration officials promised eventual renewal during recent meetings. Congress failed to extend the 25-year trade agreement before the deadline.
The factory exports Wrangler and Levi's jeans through the duty-free program, affecting 10,000 employees. Kenya will face 33 percent import taxes without the agreement, compared to the current 10 percent tariffs. Bedi expects buyers to shift orders to cheaper producers in Bangladesh and Vietnam. Officials suggested a possible retroactive two-year renewal during the November legislative sessions.
The factory exports Wrangler and Levi's jeans through the duty-free program, affecting 10,000 employees. Kenya will face 33 percent import taxes without the agreement, compared to the current 10 percent tariffs. Bedi expects buyers to shift orders to cheaper producers in Bangladesh and Vietnam. Officials suggested a possible retroactive two-year renewal during the November legislative sessions.
