Kenya is exploring new trade opportunities following a major policy change by the United States, which will see all imports into the country attract an additional 10 per cent tariff starting April 9, 2025.
The new tariff structure, announced by President Donald Trump, marks a significant change in international trade dynamics. Kenya, which falls under the most-favoured-nation (MFN) category, will be directly affected by the new levy, while nearly 60 other countries and regions — including the European Union — will face steeper tariffs ranging from 11 to 50 per cent.
Kenya’s Ministry of Investments, Trade and Industry, along with global consulting firm PwC, believe the situation presents a unique window for local businesses to enhance competitiveness, especially in exports to the American market.
Trade Cabinet Secretary Lee Kinyanjui acknowledged the challenges the policy poses to Kenyan exporters, citing increased operational costs. “Even though the ten per cent tariff is lower than what some of our competitors face, it still creates an extra cost burden,” Kinyanjui said. “This will require strategic investment in local production capacity, infrastructure, and skill development to meet potential new demand.”
PwC, in its policy advisory, emphasized that Kenya must move quickly to secure gains through the ongoing Kenya-US Strategic Trade and Investment Partnership (STIP), which aims to strengthen bilateral economic ties.
In the near term, the advisory firm suggested that Kenya could benefit from the higher tariffs imposed on other countries by ramping up its own export volumes to the US.
“This is the time to diversify our export portfolio,” PwC noted. “Kenya can step in to supply goods that are now more costly from traditional exporters facing steep US tariffs.”
Kenya has long enjoyed tariff-free access to the US market through the African Growth and Opportunity Act (AGOA), which is scheduled to expire at the end of September 2025. AGOA has played a key role in facilitating exports, especially of apparel, textiles, and select agricultural items.
PwC noted that the recent Executive Order introducing new import tariffs does not make specific reference to AGOA, and expects further clarity to come from US Customs and Border Protection on how the measures will impact existing trade arrangements.
“AGOA continues to provide a significant trade advantage by offering non-reciprocal preferences,” PwC said, adding that future implementation instructions from US authorities will be crucial in understanding how the order interacts with AGOA exemptions.
The global reaction to the US tariff decision has been mixed. While countries like China have responded with retaliatory measures, others, such as Singapore, have chosen not to counter. The policy shift has introduced fresh volatility into financial markets, with global indices falling sharply following Trump’s announcement on April 2.
