By John Kariuki
The Kenya National Chamber of Commerce and Industry (KNCCI) has responded to the recent imposition of a 10% reciprocal tariff on Kenyan exports to the United States, calling it both a challenge and a strategic opportunity for the country’s private sector.
While acknowledging the immediate impact on exporters, KNCCI emphasized that Kenya now enjoys a unique advantage over its global competitors. The new U.S. policy, which has introduced wide-ranging tariffs on imports from around the world, positions Kenya favorably in global supply chains—especially in textile and apparel manufacturing.
According to KNCCI, Kenya’s 10% tariff is significantly lower than those imposed on key rivals in the textile sector: Vietnam (46%), Sri Lanka (44%), Bangladesh (37%), China (34%), Pakistan (29%), and India (26%). “This is a moment for Kenya to rise as a preferred sourcing hub for U.S. buyers seeking cost-effective, high-quality products,” the statement read.
With bilateral trade between Kenya and the United States reaching Ksh. 177 billion in 2023—including Ksh. 64.3 billion in exports—KNCCI sees an opportunity to scale production, upgrade facilities, and add value to goods that have traditionally been exported raw or semi-processed.
KNCCI urged Kenyan manufacturers to capitalize on this moment by modernizing textile operations, investing in skilled labor, and expanding into sectors like leather and agro-processing. The Chamber also emphasized the importance of value addition in agriculture, encouraging local processing of tea, coffee, and horticultural goods to enhance export earnings and reduce exposure to global price shocks.
Businesses were further encouraged to improve supply chain efficiency through vertical integration, thereby lowering operational costs and staying competitive under the new tariff landscape.
However, KNCCI also flagged several challenges. The 10% tariff will likely reduce profit margins in the short term. Scaling up production will require significant investment in technology, infrastructure, and workforce development. Additionally, supply chain adjustments will demand close collaboration between producers, logistics providers, and government agencies. There’s also concern about long-term U.S. protectionist trends, which could limit market access down the line.
To help the business community adapt, KNCCI committed to engaging with key government ministries, facilitating business-to-business connections with U.S. buyers, providing technical support and training, and advocating for policy incentives that support export growth. The Chamber also pledged to monitor the implementation of the tariffs and work with members to explore alternative export markets.
In conclusion, KNCCI expressed its readiness to partner with the government in advancing Kenya’s industrialization agenda. By encouraging businesses to adapt and innovate, the Chamber believes that the country can turn this challenge into a springboard for economic transformation and long-term global competitiveness.
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