The Kenya National Chamber of Commerce and Industry (KNCCI) is urging local manufacturers to seize the opportunity presented by recent tariff adjustments by the United States to boost their exports, particularly in the textile and apparel sectors.
The US government recently imposed tariff increases ranging from 10 to 50 percent on imports from 185 countries, including Kenya. However, the 10 percent tariff on Kenyan goods is significantly lower than those faced by its key competitors in the US market. For instance, Vietnam is now subject to a 46 percent tariff, Sri Lanka 44 percent, Bangladesh 37 percent, China 34 percent, Pakistan 29 percent, and India 26 percent.
KNCCI says this development presents a strategic opening for Kenya to strengthen its position in the US textile and apparel market, which already constitutes a significant portion of its exports. Currently, textiles, apparel, and coffee account for over 40 percent of Kenya’s exports to the US. Trade between the two nations is valued at Ksh 177 billion, with Kenya exporting goods worth Ksh 64.3 billion.
Despite the short-term challenges posed by the 10 percent tariff, KNCCI believes that Kenyan manufacturers can gain a competitive edge by investing in facility upgrades, enhancing value-addition processes, and developing their workforce to meet the potential rise in demand.
In addition to textiles and apparel, the Chamber is also encouraging increased value addition in coffee, tea, and horticultural exports to counter the impact of the new tariffs. By moving beyond raw exports to more refined products, exporters can command higher prices and cushion the effects of increased costs.
However, KNCCI cautions that persistent or escalated protectionist policies from the US could limit Kenya’s market access in the long run. As such, it is advising exporters to diversify their international markets and reduce dependency on any single trading partner.
The Chamber remains optimistic that, with the right investments and strategies, Kenyan manufacturers can turn the tariff shift into a growth opportunity and solidify their presence in the global marketplace.
