Kenya has responded to the newly imposed 10% tariff on its exports to the United States with a mix of concern and optimism. While the tariff presents an additional cost burden for exporters, the government sees a potential silver lining positioning Kenya as a competitive sourcing hub in key industries such as textiles and manufacturing.
Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, emphasized that the government is actively working to mitigate the negative impact while seizing new opportunities. He noted that while Kenyan exporters will face a 10% duty in the U.S. market, this rate is significantly lower than those imposed on key competitors like Vietnam, Sri Lanka, and Bangladesh.
“With other textile-exporting countries facing much higher tariffs, Kenya could become an alternative sourcing hub for U.S. buyers,” Kinyanjui stated. “We encourage investment in local textile production and value addition to attract businesses looking for cost-effective suppliers.”
Beyond textiles, the government has identified manufacturing as another area poised for growth. The Ministry of Investments, Trade, and Industry (MITI) is collaborating with the Ministry of Foreign Affairs (MFA) to develop a comprehensive export growth plan aimed at strengthening Kenya’s position in global trade.
“We must explore opportunities to expand our manufacturing base,” Kinyanjui said. “With higher tariffs making goods from other countries more expensive, Kenyan industries especially in apparel, leather, and agro-processing can fill the gap and benefit from increased demand.”
Recognizing the need for adaptability, the Kenyan government is focusing on improving infrastructure, technology, and workforce skills to ensure the country remains competitive.
“We must be proactive in expanding production to meet new demand,” Kinyanjui emphasized. “Strengthening supply chains will be crucial in maintaining Kenya’s edge in international markets.”
Despite the immediate challenges, the government remains confident that Kenya can turn this situation into an opportunity for economic growth.
“This is not the time to panic,” Kinyanjui concluded. “It is the time to be strategic, innovative, and bold in securing Kenya’s place in international trade.”
