Government responds after Trump imposes tariff on Kenyan exports
Government responds after Trump imposes tariff on Kenyan exports
Foreign Affairs Principal Secretary Korir Sing’oei has revealed that the government will be pushing for a waiver following President Donald Trump’s imposition of a 10% tariff on Kenyan exports.
In a statement dated Thursday, April 3, the PS noted that the tariff would not take effect given the current African Growth and Opportunity Act (AGOA) framework.
The AGOA framework was approved in 2000 and was aimed at giving African exporters ease to access the US market. Through the framework, sub-Saharan African countries export various products duty-free to the US.
Therefore, the PS explained that the new tax move would only apply if the US Congress repealed the AGOA framework or the framework lapsed.
“While the tariffs may be one of the lowest, we shall be vigorously advocating for their waiver. Additionally, as AGOA is a Congressional framework for market access to the US by African exporters,” read the statement in part.
“It is our considered view that until the law lapses end of September 2025 or unless repealed earlier by Congress, the new tariffs imposed by President Trump will, in any event, still not be immediately applicable.”
On the other hand, he expressed that Kenya was one of the few countries that were set to enjoy the lowest tariff rate of 10%.
As a solution for the export trade, the PS opined that African countries needed to promote within themselves.
“The tariff imposed on Kenya is still one of the lowest and at the same level as the UK, Egypt, Morocco, Uganda, Tanzania and Ethiopia. Long term, the solution lies in greater intra african trade,” he added.
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Countries facing high tariff rates include Lesotho at 50% and 40% for Mauritius.
Meanwhile, the Ministry of Trade detailed that it would be engaging with Kenyan exporters and stakeholders regarding the new US policy.
“The major challenge posed by the U.S reciprocal tariff is the increased costs for Kenyan exports. While the 10% tariff is lower than the competitors’ tariffs, it still raises costs for Kenyan businesses exporting to the U.S. Supply chain adjustments will be necessary, such as expanding production to meet new demand. This will require investment in infrastructure, technology, and skills development.
“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,” CS Lee Kinyanjui stated.
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