Kenya’s trade with the United States faces fresh uncertainty as the U.S. imposes a 10 percent tariff on Kenyan imports, part of a sweeping move affecting 185 countries. The new measures, introduced under former President Donald Trump’s latest tariff strategy, coincide with the impending expiration of the African Growth and Opportunity Act (AGOA) in September, raising concerns about the future of U.S.-Kenya trade relations.
Kenya has long benefited from tariff exemptions under AGOA, allowing duty-free exports of apparel, coffee, and tea to the world’s largest economy. However, with the preferential trade deal set to expire and a new tariff regime in place, Kenyan exporters could face increased costs and reduced competitiveness in the U.S. market. The latest figures from the United States Trade Representative’s office show that Kenya exported goods worth $737.3 million (Ksh.95.3 billion) to the U.S. in 2024, a decline of 17.5 percent from the previous year. Meanwhile, imports from the U.S. surged 61.4 percent to $782.5 million (Ksh.101 billion), underscoring shifting trade dynamics.
Trump’s tariff decision reflects a broader shift in U.S. trade policy, with the 10 percent baseline tariff extending to multiple African nations, including Rwanda, Burundi, Eritrea, South Sudan, Sudan, Ethiopia, and Uganda. Other countries, such as Nigeria, Malawi, Zimbabwe, the Democratic Republic of Congo, Zambia, and Mozambique, face even higher levies, ranging from 11 percent to 18 percent.
The White House cited Kenya’s existing 10 percent tariff on U.S. goods along with concerns over currency policies and trade barriers as justification for the reciprocal measure. With AGOA’s expiration on the horizon, Kenya may need to negotiate a new bilateral agreement with Washington to maintain its access to the lucrative American market.
