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Kenya taps Sh1.3bn US fund for workers’ rights ahead of new trade deal

Kenya taps Sh1.3bn US fund for workers’ rights ahead of new trade deal

Textile workers at Altex EPZ Textile Manufacturing in Athi River. FILE PHOTO | NMG Kenya is set to benefit from a Sh1.29 billion US government fund meant to improve compliance with international labour standards in key export sectors ahead of a new trade deal with Washington.

The US Department’s Bureau of International Labor Affairs (ILAB) said Kenya is among three African countries picked for the grant alongside the Democratic Republic of the Congo (DRC) and one other unnamed nation.

“Made available through the Department’s Bureau of International Labor Affairs (ILAB), the grant of $11.7 million (Sh1.29 billion) will support efforts to improve compliance with relevant international labour standards and acceptable conditions of work, with an emphasis on promoting occupational safety and health in one or more export-oriented economic sectors, such as the mining and quarrying sector,” the Department said in an update.

“ILAB’s mission is to promote a fair global playing field for workers and businesses in the United States and around the world by enforcing trade commitments, strengthening labour standards and combating international child labour, forced labour and human trafficking.”

The move comes as Kenya stepped up talks for a new trade deal with Washington before the expiry of the Africa Growth Opportunity Act (Agoa), which allows sub-Saharan African countries to export thousands of products to the US without tariffs or quotas until 2025.

“We appreciate what has been achieved through Agoa, but it is time we moved to much closer trade arrangements that are mutually beneficial. We will not lose focus on concluding the FTA,” President Uhuru Kenyatta said on Tuesday when he bid farewell to outgoing US Ambassador to Kenya Kyle McCarter at State House, Nairobi.

Agoa grants 40 African States quota and duty-free access to the US market of more than 6,000 product lines. Statistics showed that the two-way goods trade between these nations totalled Sh106 billion in 2019, up 4.9 per cent from 2018.

The grant by ILAB comes as boost for the two nations eyeing enhanced trade between themselves but in an environment where there is more focus on compliance with global human rights and labour standards.

Employee welfare is a sensitive matter in the US, with businesses required to ensure their operations and dealings both at home and abroad complied with international labour standards. The US foreign policy, for example, typically portrays forced labour as a violation of international human rights standards that must be stamped out.

All new-generation free-trade agreements […]

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