Kenyan businesses brace for US tariffs impact

With the tariffs set to take effect on April 9, Kenyan businesses are scrambling to assess the financial impact and explore alternative markets.

Kinyanjui pointed to Kenya’s textile industry as a potential beneficiary, as steeper tariff hikes on other exporting nations could make Kenyan products more attractive to US buyers.

“There is a great opportunity to diversify our exports. We can tap into industries such as apparel, leather, and agro-processing to fill gaps left by higher tariffs on other suppliers,” he said.

The Ministry of Foreign Affairs is collaborating with stakeholders to identify high-potential products and attract targeted investments.

Kenya has long benefited from duty-free access to the US under the African Growth and Opportunity Act (AGOA), but the new tariffs now change the equation.

In 2024, Kenya’s exports to the US totaled Sh193.5 billion—a 17.5 percent decline from 2023, mainly consisting of apparel, coffee, and tea. Meanwhile, imports from the US surged by 61.4 percent to Sh101 billion.

While Kenya faces a 10 percent tariff, Nigeria will be hit with 14 percent, Malawi 17 percent, and Zimbabwe 18 percent. Lesotho, which the White House claims imposes a 99 percent tariff on US goods, will face a 50 percent reciprocal tariff.

The timing of the measures is critical, with AGOA set to expire in September this year.

Since 2000, AGOA has allowed duty-free access for many African products into the US, but the new tariffs add uncertainty to trade negotiations and Kenya’s economic outlook.

The Trump administration has defended the decision, citing trade imbalances, currency manipulation, and restrictive trade barriers imposed by other countries.