The Kenya Association of Manufacturers (KAM) has raised concerns following President Donald Trump’s decision to slap the country with a 10 per cent reciprocal tariff.

Through a statement on Friday, April 4, 2025, manufacturers raised fears that the tariff could have a long-lasting impact on Kenya’s exports.

KAM’s CEO, Tobias Alando, explained that previously, Kenyan goods enjoyed duty-free market access to the United States under the African Growth and Opportunities Act (AGOA).

However, with the new tariffs, he detailed that Kenyan products are expected to face competition from other markets, putting at risk Ksh95 billion worth of goods exported in 2024.

“Kenya’s exports to the USA, previously duty-free under AGOA, will now be subject to additional costs, reducing their market competitiveness. This is expected to impact on Kenya’s total exports of Ksh95 billion (US $737.3 million) realized in 2024,” Alando stated.

Additionally, KAM CEO disclosed that the reciprocal impositions are set to affect Kenya’s manufacturers as they will be compelled to foot the extra charges required to export their products to the US.

“Contracts currently based on zero per cent AGOA preferential treatment will be affected, potentially forcing Kenyan manufacturers to absorb extra costs,” KAM noted.

Further they warned of the expected widening of the trade deficit between Kenya and the US.

“Kenya’s trade deficit with the USA, currently at Ksh5.8 billion (US$45.2 million), may widen due to expected export reductions and loss of USA market share.”

What next

With the tariffs expected to take effect late April 2025, KAM called on President William Ruto’s administration to open dialogue with the US over the extension of AGOA beyond its expiry in September 2025.

Manufacturers further implored the government to review the 10 per cent tariff to maintain Kenya’s export price competitiveness in the USA market and provide for a transition clause for cargo currently en route to the USA that was shipped based on the 0 per cent AGOA preference.

“Strengthening Kenya’s position in global markets in line with the shifting global economic dynamics by addressing key factors such as cost of production and a conducive business environment,” KAM implored Ruto’s administration.

The tariffs

Kenya charges the US a 10 per cent tariff, including currency manipulation and trade barriers, per the White House.

With that in mind, Trump said he would impose a 10 per cent baseline tariff on all US imports from 185 countries and higher duties on some of America’s top trading partners.

Nonetheless, Trade Cabinet Secretary Lee Kinyanjui remained bullish, stating that Kenya stands to benefit despite the tariffs.