Last week’s developments in US tariff policies by President Donald Trump signify a drastic shift in the global trade landscape, with several stakeholders in Kenya seeing opportunities to boost competitiveness and negotiations with Washington.
- From 9 April 2025, all goods imported into the US will face an additional 10% duty over the most-favoured-nation (“MFN”) rate where Kenya falls.
- Further, nearly 60 countries and territories, including the European Union (“EU”), will face adjusted tariffs ranging from 11% to 50%.
- The government and Big Four accounting firm PwC see opportunity in the current global tariff war, including in providing the impetus for further diversification.
Lee Kinyanjui, Kenya’s Investments, Trade and Industry Cabinet Secretary notes that the major challenge posed by the US reciprocal tariff is the increased costs for Kenya export.
“While the 10% tariff is lower than the competitor’s tariff, it still raises costs for Kenyan businesses exporting to the US. Supply chain will be necessary, such as expanding production to meet new demand. This will require investment in infrastructure, technology and skills development,” he noted.
According to advisory firm PwC, to overcome the new challenges, Kenya should continue to pursue the Kenya-US Strategic Trade and Investment Partnership (“STIP”) for bilateral trade benefits where this is still feasible.
In the short to medium- term, PwC says Kenya should accelerate efforts to leverage this opportunity to increase export volumes to the US where competitor countries face higher tariffs.
“There is a great opportunity to diversify exports beyond our current exports. Kenya can explore opportunities to process and manufacture goods that are now more expensive from countries with higher tariffs,” the firm says in an analysis statement.
Kenya, like other eligible sub-Saharan African countries, has benefited from duty-free access to the US market under the African Growth and Opportunity Act (“AGOA”), set to expire on 30 September 2025. AGOA has been central to US economic policy with Africa, primarily facilitating Kenyan exports of textiles, apparel, and some agricultural products.
“AGOA offers unilateral trade preferences without requiring reciprocal tariffs. The Executive Order introduces tariffs on imports under existing US trade agreements but does not specifically mention AGOA,” says PwC, “We expect that implementing instructions from US Customs and Border Protection will clarify the operational details of the Executive Order and provide essential guidance on how the new tariff measures will be applied to imported goods including under AGOA.”
Markets have reacted differently to Trump’s sweeping tariffs. While some such as China have imposed their own retaliatory tariffs, others such as Singapore have decided not to. The uncertainty has spooked global markets, with most indices plummeting after President Trump made the announcement on April 2.
