Kenya exports goods are set to hit hard after US President Donald Trump imposed a 10 percent Tarrif on all imports to America.
Furthermore , higher duties on some of America’s top trading patners aiming to address what he considers unfair trade practices.
Kenya benefits from AGOA
The decision could significantly impact Kenya, which currently imposes a 10% on imported goods, from the U.S.
Kenya benefits from the African Growth and Opportunity Act (AGOA), exporting goods like textiles , coffee, and tea to the U.S. duty-free.
Since AGOA’s inception in 2000, Kenya has exported garments worth $737.3 million (Ksh.95.3 billion) to the U.S. in 2024, down 17.5 percent ($156.7 million) from 2023, to the U.S.
Addressing unfair trade practices
President Trump’s directive to impose reciprocal tariffs on Kenyan exports, potentially up to 10% mirroring Kenya’s VAT rate on U.S. goods,aims to level the playing field for American products in foreign markets.
Additionally,economy analysts warns that such tariffs could make Kenyan exports less competitive in the U.S. market.
Leading to reduced export earnings and potential job losses.
Especially in key industries like textiles and agriculture.
Kenya no longer considered an ally
Kenya may no longer enjoy the preferential treatment it once did under previous U.S. administrations.
On Wednesday night Trump stated
” Increased reliance on foreign producers has left the US supply chain vulnerable ”
This was during a national address he defended the tariffs were essential for “re-balance” in trade and support for US domestic manufacturing.
He asserted that these tariffs were necessary to address perceived unfairness in international trade practices.
