He said the proposal has already been placed before the US Congress, which will now decide whether to approve the extension.
Mudavadi shared the update while addressing reporters, noting that the decision offers a moment of relief for Kenya and other African countries that rely heavily on AGOA to access the American market.
He explained that extending the trade pact without any changes would give exporters more time and stability as wider discussions on the future of AGOA continue.
According to Mudavadi, the United States has been reviewing the programme, but the proposal from the Trump administration shows an interest in keeping trade relations steady as negotiations advance.
He added that Kenya has been actively engaging with US officials to secure continuity, especially for sectors such as textiles, apparel, and agricultural products, which benefit most from duty-free access.
Business owners, especially those in export processing zones, have welcomed the news.
Many say uncertainty over AGOA’s future has caused fear among investors, delayed expansion plans, and created tension among workers.
The proposed one-year extension, they believe, will give industries room to plan and safeguard thousands of jobs that depend on the agreement.
Mudavadi noted that Kenya continues to push for a longer and more predictable extension, ideally lasting several years, to protect investment confidence.
He also said the government is working to diversify markets and strengthen local manufacturing so that the country does not rely solely on AGOA.