Trade CS Kinyanjui Explains Impact of U.S. 10% Export Tariff on Kenya

• Apr 03, 2025

Kenya’s Trade Cabinet Secretary (CS) has addressed concerns over the new 10% export tariff imposed by the United States, explaining what it means for the country’s trade sector. The U.S. recently introduced tariffs affecting textile exports, a move that has raised questions about its impact on Kenya’s economy and competitiveness in the global market.

Kenya’s Tariff is Lower Than Other Countries

In his statement, Trade CS Kinyanjui clarified that Kenya’s 10% tariff is significantly lower than the rates imposed on other textile-exporting countries. He provided a comparison, noting that Vietnam faces a 46% tariff, Sri Lanka 44%, Bangladesh 37%, China 34%, Pakistan 29%, and India 26%.

According to Kinyanjui, while any tariff increase poses challenges, Kenya is still in a better position compared to these other nations. He assured businesses that the government is actively working to minimize any negative impact on the local textile industry.

What This Means for Kenya’s Trade Sector

The introduction of the tariff means Kenyan textile exports to the U.S. will become slightly more expensive, potentially affecting competitiveness. However, Kinyanjui pointed out that Kenya’s lower tariff rate compared to other textile-producing nations could still offer an advantage. If businesses adapt strategically, they may maintain or even grow their market share in the U.S.

The Trade CS emphasized that the government is engaging with U.S. trade representatives to ensure that Kenya continues to benefit from trade agreements such as the African Growth and Opportunity Act (AGOA). He also noted that Kenyan exporters should focus on improving efficiency and quality to remain competitive despite the tariff.

Government’s Strategy to Address the Impact

Kinyanjui reassured stakeholders that the government is exploring ways to support the textile sector, including incentives for exporters and expanding markets beyond the U.S. He urged local manufacturers to explore regional trade opportunities within Africa and diversify their export destinations.

While the new tariff presents a challenge, Kenya remains in a relatively strong position compared to other textile exporters. The government’s focus, according to Kinyanjui, will be on ensuring that the country remains competitive while seeking negotiations to improve trade conditions with the U.S.