Kenyan businesses that ship their products to the U.S. are set for harder times following the latest move by President Donald Trump to impose a 10 percent tariff, implying that the shipments could turn less competitive in the lucrative destination market.

According to the Kenya National Chamber of Commerce and Industry (KNCCI), the new tariff is set to negatively affect Kenya’s trade imbalance, which stands at KES1.7 trillion currently. 

“While Kenya might not retaliate by imposing higher tariffs on imports from the US, the Chamber will urgently convene a meeting with stakeholders to address the emerging challenges and find modalities to cushion exporters, both local and international,” KNCCI statement signed by chamber president Dr. Erick Rutto said in part.

He added, “the reciprocal tariffs by the Trump Administration is a wake-up call to hit the reset button and relook at Kenya’s economic structure since 1960.” 

On Wednesday, President Trump signed a new executive order implementing the new baseline import tariff on goods, barely two months after directing his government to impose fresh tariffs on countries that charge Value Added Tax (VAT) on US products. 

While the tariff will affect Kenyan exports in key sectors such as horticulture, textiles, tea, coffee and leather, President Trump said the measures were necessary as they only protect America's interests in trade with the countries affected, because countries were taking advantage of the US by imposing high tariffs and other trade barrier

Other Kenyan exports to the US include pharmaceutical products such as vaccines, blood, antisera, toxins, and cultures. The value of trade exports that Kenya trades in pharmaceutical products is approximately KES22 billion ($157 million).

Kenya has been exempt from tariffs in the USA under the African Growth and Opportunity Act (AGOA) since 2000. However, the new tariffs imposed by the Trump administration come at a time when the AGOA agreement is set to expire on September 30, 2025, with little prospects for renewal.

“The development gives Kenya and Africa a perfect opportunity to build stronger and resilient brands, including local capacity on information technology products, digital technology, equipment and machinery to spur industrialization,” KNCCI explained. 

The chamber added that the new wave of tariffs targeting key economies across the continent offers the “opportune moment for African countries and governments to allow flow of capital to grow enterprise and commerce, facilitate trade in services and open their markets for intra-trade to thrive.”

While reacting to the new tariff on Kenyan exports to the US, Foreign Affairs Principal Secretary Korir Sing’oei said; “Tariffs imposed on Kenya are still one of the lowest and at the same level as the UK, Egypt, Morocco, Uganda, Tanzania, and Ethiopia. Long term, the solution lies in greater intra-African trade.”

"Additionally, since AGOA is a Congressional framework for market access to the U.S. by African exporters, our considered view is that until the law lapses at the end of September 2025, or unless repealed earlier by Congress, the new tariffs imposed by President Trump will not be immediately applicable," the PS explained.

Last year, Kenya exported goods worth Kes95 billion ($737.3 million) to the US, and imported goods worth KES101 billion ($782.5 million) from the north American market.

Across Africa, the countries reeling from the highest tariffs under Trump include: Lesotho (50 percent), Madagascar (47 percent), and Botswana (37 percent) each, South Africa (30 percent). Other countries across the world hit by highest tariffs are Cambodia (49 percent), Laos (48 percent), Vietnam (46 percent), Sri Lanka, Myanmar (44 percent) and Bangladesh, Serbia 37 percent.

Canada and Mexico, two of America’s closest trading partners, were spared as the White House said the latest changes would not change anything for them.

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