The Kenya Association of Manufacturers (KAM) has urged U.S. President Donald Trump to reconsider a new 10 per cent tariff imposed on Kenyan exports, warning that the move threatens the country’s industrial competitiveness and job creation efforts.
KAM Chief Executive, Tobias Alando, said the tariff—introduced through a recent executive order mandating reciprocal trade terms with Kenya—will severely undermine the competitiveness of Kenyan goods in the U.S. market.
“Kenya’s exports to the US, previously duty-free under AGOA, will now be subjected to additional costs, reducing their market competitiveness and therefore impacting Kenya’s total exports of 737.3 million dollars (Ksh95.11 billion) realized in 2024,” KAM said in a statement dated April 4.
Under the African Growth and Opportunity Act (AGOA), Kenyan exporters had enjoyed duty-free access to the U.S. market. However, with the preferential agreement set to expire in September 2025 and the new tariffs coming into effect, KAM is calling for immediate action.
KAM is appealing for an extension of AGOA, citing its substantial economic and social impact. According to the association, AGOA has directly created over 58,000 jobs and indirectly supported more than 100,000 others across Kenya’s manufacturing and export sectors.
While KAM acknowledges that tariffs are a legitimate trade policy tool, it warned that the abrupt introduction of new charges risks destabilizing existing trade arrangements. “The tariff will affect existing contracts based on AGOA’s preferential treatment, forcing Kenyan manufacturers to absorb the extra cost,” KAM noted.
The association has also called on the U.S. government to provide a transitional clause for cargo already en route to the U.S., exported under the expectation of duty-free entry.
KAM stressed that the tariff could widen Kenya’s trade deficit with the U.S. and jeopardize gains made in key export sectors including textiles, tea, coffee, and pharmaceuticals such as vaccines and medical cultures.
Despite the setback, KAM assured its members and partners that it has initiated engagements with the Kenyan government and other stakeholders to protect Kenya’s trade interests and preserve its competitive edge in the U.S. market.
