The Trade, Investment, and Industry Cabinet Secretary, Lee Kinyanjui, has said that the 10% tariffs imposed on Kenyan exports by the United States provide the country with a unique opportunity to expand its market.
In a statement on Thursday, April 3, the CS noted that the new tariffs not only present challenges but also open up an avenue for the country to grow its exports of textile products globally, particularly in the United States, where the demand for such products remains high.
According to the CS, the 10% export tariffs imposed on Kenya are much lower than those faced by the country's key textile exporting competitors, including Vietnam (46%), Sri Lanka (44%), Bangladesh (37%), China (34%), Pakistan (29%), and India (26%).
Kinyanjui stressed the need for more investment in the industry to attract businesses that are seeking alternatives to countries with higher tariffs.
"The 10% tariff is a hurdle, not a wall, and with competitors facing far steeper barriers, Kenya has a rare chance to shine," he said.
"By harnessing its resources, workforce, and strategic vision, Kenya can not only sustain itself but emerge as a stronger player on the global stage, proving that even in a shifting trade landscape, its economy can thrive," he added.
According to the CS, other industries, including apparel, leather, and agro-processing, should also take advantage of the situation and manufacture goods that are now more expensive in countries with higher tariffs.
Kinyanjui affirmed that by doing this, the country will also have an opportunity to diversify its exports beyond the current sectors.
The CS, who warned of an increase in the cost for Kenyan exports, said that the ministry, in collaboration with the Ministry of Foreign Affairs, is engaging with various stakeholders to encourage more investment in the country to enhance the country's exports and ensure economic stability.
"The Ministry is committed to managing this transition with Kenya's best interests at heart. We will continue engaging stakeholders, strengthening partnerships, and implementing policies to support sustainable trade growth and economic resilience," he said.
Acknowledging the country's solid capability to adapt to major global economic shifts, Kinyanjui called for increased investment in infrastructure, technology, and skills development to counter the tariffs.
"The nation has weathered global economic shifts before, and with government backing and private sector ingenuity, it can bridge these gaps. By prioritizing key sectors and streamlining logistics, Kenya can mitigate the tariff’s sting while building a more self-sufficient economy," he said.
On Thursday, April 3, U.S. President Donald Trump signed a new directive that would impose tariffs on countries that apply Value Added Tax (VAT) on imported U.S. products.
The new tariffs are expected to affect Kenyan exports, particularly in key sectors such as textiles, tea, and coffee, which had previously been exempt from tariffs under the African Growth and Opportunity Act (AGOA). The new directive is expected to lead to reduced exports, job losses, and lower revenues for businesses relying on the American market.
In Africa, 25 countries are set to be affected by the tariffs, with Lesotho, Madagascar, Mauritius, Botswana, Angola, Libya, and South Africa being the hardest hit, while Egypt, Morocco, Kenya, Ethiopia, and Ghana are the least hit.
