Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, has outlined how the country could leverage the newly introduced 10 percent tariff on its exports to the United States.
In an official statement dated April 3, 2025, Kinyanjui acknowledged that while the tariff presents challenges, it also opens doors for Kenya to strengthen its trade position in the U.S. market.
The trade minister pointed out that despite the new tariff, Kenya remains in a favorable position compared to other textile-exporting nations, which face significantly higher rates.
“Kenyan exports to the U.S. will now attract a 10 percent tariff. However, this remains lower than the rates imposed on key competitors such as Vietnam at 46 percent, Sri Lanka at 44 percent, Bangladesh at 37 percent, China at 34 percent, Pakistan at 29 percent, and India at 26 percent,” Kinyanjui explained.
With higher tariffs affecting other key textile producers, Kenya could emerge as an attractive alternative for U.S. buyers looking for cost-effective sourcing options.
Three Key Benefits for Kenya
- Strengthened Position in the Textile Industry
The CS noted that the tariff adjustments could provide an opportunity for Kenya to expand its textile manufacturing sector and attract investments in value addition. - Potential for Diversification in Manufacturing
Beyond textiles, Kenya could explore new manufacturing ventures, including apparel, leather, and agro-processing, as global demand shifts due to trade realignments. - Government-Backed Trade Expansion Efforts
The Ministry of Investments, Trade, and Industry (MITI) is working closely with the Ministry of Foreign Affairs (MFA) to promote Kenyan exports. According to Kinyanjui, strategic partnerships are being formed to identify high-potential products and boost investments in priority sectors.
Addressing the Challenges
While acknowledging the opportunities, Kinyanjui also highlighted that the new tariff introduces cost implications for Kenyan businesses exporting to the U.S. He emphasized the need for supply chain adjustments, infrastructure investments, and skills development to help firms meet increased demand.
“To remain competitive, businesses will need to expand production, invest in modern technology, and enhance workforce capabilities,” he stated.
He assured that the government is actively engaging stakeholders to navigate the transition while ensuring Kenya’s long-term trade growth and economic stability.
Background on U.S. Tariffs
The new tariff structure was introduced by U.S. President Donald Trump, who cited trade imbalances and currency manipulation concerns as the basis for the decision.
According to Trump, a 10 percent baseline tariff will be imposed on imports from 185 countries, including Kenya, while some key trading partners will face even higher rates.
“Today, we are standing up for the American worker and prioritizing America first,” Trump said, describing the decision as a major step in protecting U.S. industries.
The U.S. leader argued that taxation systems like Value-Added Tax (VAT) in various countries, including Kenya, create unfair pricing differences that disadvantage American products in global markets.
Kenya now faces the task of adapting to these changes while maximizing the opportunities presented by the new trade landscape.
