Kenya on the verge of agreeing with US to scrap 10% import tariff - PS Mukhwana

Exporters in Kenya could soon breathe a sigh of relief after the Principal Secretary for the State Department for Industry, Juma Mukhwana, revealed that the recently imposed 10 per cent import tariff on Kenyan goods entering the United States is likely to be scrapped.

“The request we have made is for the 10 per cent tariff to be removed, as we are already in the final stages of negotiating an agreement,” said Mukhwana.

“Our Cabinet Secretary was recently in the US, and we expect a delegation from the US to visit next week. The understanding is that we already have a framework we’re working on, so the 10 per cent tariff should no longer apply.”

He added that Kenya hopes the agreement will be extended to ensure the continuation of a strong bilateral relationship, noting the urgent need to finalise the process.

Mukhwana made the remarks on Wednesday in Nairobi during the launch of Kenya’s new manufacturing blueprint, an initiative led by the Kenya Association of Manufacturers (KAM).

The strategy is designed to boost the country’s manufacturing sector and improve export capacity, positioning Kenya as a leading trade hub in the region.

The 10 per cent reciprocal tariff on imports from Kenya and other countries—excluding Canada and Mexico—was announced by the Trump administration on April 2 this year.

The move sent shockwaves through Kenya’s export value chain, raising concerns over increased costs when exporting to the world’s largest economy. The tariff was expected to significantly affect Kenya–US trade relations, particularly in the agricultural sector.

Previously, most Kenyan goods exported to the US enjoyed preferential duty-free access under the African Growth and Opportunity Act (AGOA) trade agreement.

Experts in Kenya have warned that products once exempt from import duties now face higher costs, reducing their competitiveness in the US market.

The current AGOA agreement is set to expire in September this year, although discussions on its extension are already underway.

Kenya’s main imports from the United States include petroleum products, capital goods, aircraft and parts, machinery, and pharmaceuticals.

Conversely, the US primarily imports apparel, coffee, black tea, agricultural produce, home décor, and crafts from Kenya.

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