The Kenya National Chamber of Commerce and Industry (KNCCI) is calling on local agro-processors and textile manufacturers to seize emerging opportunities in the United States market following a new round of reciprocal tariffs imposed by the U.S. government on 185 countries, including Kenya.
While Kenya was among the nations slapped with tariff hikes, the KNCCI has noted that the 10 percent increase imposed on Kenyan products is significantly lower compared to what the country’s main competitors in the textile sector now face. Nations like Vietnam, Sri Lanka, Bangladesh, China, Pakistan, and India are now subject to higher tariffs ranging between 26 percent and 46 percent.“This presents a strategic opening for Kenyan exporters, especially in textiles and apparel, to enhance their footprint in the U.S. market,” KNCCI stated.
Currently, trade between Kenya and the U.S. stands at an estimated KSh177 billion, with Kenya exporting goods worth KSh64.3 billion while importing products valued at KSh112.8 billion. Textiles, apparel, and coffee account for over 40 percent of Kenya’s exports to the U.S.
The Chamber is urging manufacturers to invest in facility upgrades, value-addition processes, and workforce training to take advantage of the potential market shift and meet expected demand growth.To further mitigate the impact of the new tariffs, exporters in coffee, tea, and horticulture have been advised to increase value addition to enhance competitiveness.
However, KNCCI cautioned that the 10 percent tariff, while comparatively lower, will still increase production costs in the short term, potentially denying exporters the capital they need for growth and expansion.“The risk remains that any additional long-term protectionist policies from the U.S. could further restrict market access for Kenyan products,” KNCCI warned, encouraging exporters to diversify their global markets to cushion against over-reliance on any single trading partner
