“This is not the time for panic. It is the time to be strategic, innovative, and bold.”
– Hon. Lee Kinyanjui, Cabinet Secretary for Investments, Trade, and Industry
Kenya is now facing a 10% export tariff on all goods entering the United States, following sweeping trade reforms announced by President Donald Trump last week. While the move is expected to pose short-term challenges for exporters, the Kenyan government views the development as an opportunity to reposition itself in global trade.
The new policy, part of a broader push by the U.S. to implement reciprocal tariffs, will see imports from 185 countries subjected to a baseline 10 percent duty, with higher rates applied to nations that, according to the White House, maintain particularly restrictive trade practices.
Kenya, which currently levies a 10 percent tariff on U.S. goods, was among several African countries specifically called out by Trump during a nationally televised announcement. Framing the new trade measures as a declaration of “economic independence,” Trump said the tariffs are aimed at curbing what he described as unfair trade practices and restoring balance to America’s global trade relationships.
The impact on Kenya could be significant. According to the Office of the United States Trade Representative, bilateral trade between the two nations totaled $1.5 billion in 2024. The timing of the tariff imposition is also critical. Kenya has benefited from duty-free access to the American market for over two decades under the African Growth and Opportunity Act (AGOA), which is set to expire this September.
Despite the headwinds, Nairobi is signaling cautious optimism. Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, said the government is actively crafting a strategy to cushion local businesses while turning the tariff into a competitive advantage.
“This new policy presents both hurdles and openings,” Kinyanjui said in a statement. “Compared to nations like Vietnam, Bangladesh, and Sri Lanka, which face much steeper tariffs, Kenya remains relatively well-positioned.”
He emphasized that the government is encouraging investment in textile production and value addition, banking on the possibility that U.S. buyers may seek alternative, cost-effective suppliers. Kenya’s average import duty currently stands at 13.8 percent, with some agricultural products attracting tariffs as high as 100 percent.
Kinyanjui also noted that as tariffs make goods from other countries more expensive, Kenya has a chance to increase its export volumes, provided it can scale production efficiently.
To guide the transition, the Ministry of Investments, Trade, and Industry is collaborating with the Ministry of Foreign Affairs on a comprehensive export growth plan. The aim is to attract targeted investments, strengthen supply chains, and ensure Kenyan goods remain globally competitive.
“This is not the time for panic,” Hon. Kinyanjui said. “It is the time to be strategic, innovative, and bold. We are committed to turning this challenge into a platform for long-term economic growth.”
