Africa's decline in textile exports to the US under Africa Growth and Opportunity Act (Agoa) has prompted America to reconsider policy changes.
Kenya's textile and clothing sales to the US dropped from $272 million in 2004 to $267 million last year.
The drop has been the result of increased global competition, according to latest annual Agoa report by Office of the US Trade Representative.
Asian producers sales soared as US apparel imports from Africa fell 12 percent in 2005 due to cancellation of quota system in 2005.
End of an Agoa provision in September 2007 which permits use of fabrics not made in either Africa or the US has also affected Kenya's textile trade with the US, according to a report.
Kenya's textile sale to the US is affected due to pre-shipment inspection system.
Some US importers resent "double taxation" as charging of import documentation fees as well as payments to two companies has to be made.
Bush administration is seeking to address "inefficient and costly transport and other supply-side constraints affecting trade competitiveness," the US Trade Representative says. "It will also need to determine appropriate policy responses to particular trends and prospective changes affecting one of Agoa's key sectors - apparel."
The US Agency for International Development (USAID) plans expenditure of $200 million in coming five years to increase trade competitiveness of Africa.
Four trade missions were organized to the US last year for Kenyan and other East African manufacturers in handicraft, furniture, food and textile sectors.
Kenya's Trade Minister Mukhisa Kituyi and Finance Minister Amos Kimunya will be attending the fifth annual Agoa Forum in Washington early next month.
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