What it means for Kenya after U.S imposes 10% export tariff: Trade CS Kinyanjui

In a statement, the Trade CS explained that the 10 per cent rate is lower than the rates imposed on other countries that export textiles such as Vietnam (46 per cent), Sri Lanka (44per cent), Bangladesh (37 per cent), China (34 per cent), Pakistan (29 per cent) and India (26 per cent). 

He added that Kenya can capitalise on this by positioning itself as the source hub for US buyers, hence attracting businesses that seek to avoid higher costs from traditional suppliers. 

Kinyanjui pointed out that Kenya could explore opportunities to process and manufacture goods that will become more expensive from countries with higher tariffs. 

Further, he reaffirmed that his Ministry is working on a plan to enhance Kenya's exports. 

"The Ministry is also working with stakeholders to identify key products and encourage investment in targeted sectors to maximine the benefits of this tariff shift," he said. 

In contrast, he opined that the tariff would increase the cost of doing business for Kenyans exporting to the U.S.

To mitigate the issue, Kinyanjui recommended adjustments to be done within the supply chain sector such as expanding production to meet new demands. 

"The Ministry is committed to managing this transition with Kenya's best interests at heart. We will continue engaging stakeholders, strengthening partnerships, and implementing policies to support sustainable trade growth and economic resilience.

The reciprocal impositions are set to affect Kenya's total goods trade with the United States, which stood at Ksh.196 billion in 2024. 

Data from the United States Trade Representative’s office showed that Kenya exported goods worth Ksh.95.3 billion to the US and imported goods worth Ksh.101 billion. 

Since May 2000, Kenya has been exempted from tariffs when exporting to the US under the African Growth and Opportunity Act (AGOA), which expires this September.