Cabinet Secretary for the Ministry of Investments, Trade, and Industry, Lee Kinyanjui, has confirmed that Kenya will formally appeal a 10 per cent trade tariff imposed by the United States.
Speaking to a local media station on Monday night, April 14, 2025, the CS said that they have drafted a rationale supporting the move.
“I want to confirm that Kenya will be appealing this 10 per cent trade tariff, and we have drafted the rationale for us to do that,” Kinyanjui said.
He noted that while Kenya may not be directly affected by the tariff, the country could gain a competitive edge over others whose products face even higher rates
“It is important to appreciate that global trade is very interconnected; even if Kenya may not be hit directly, maybe some of the countries we are competing with in manufacturing and textiles for that market, if their tariffs are much higher than ours, then ours, even with 10 per cent, will be more competitive,” he explained.
Kinyanjui also revealed that Kenya is likely to be the second African country to have a direct Free Trade Agreement (FTA) with the US, after Morocco, referring to the Morocco Free Trade Agreement (MAFTA) between the US and the North African country, which entered into force in January 2006.
“We are likely to be the second country to have a direct FTA with the U.S. after Morocco,” the CS stated.
The CS further stressed the importance of market diversification amid growing global economic uncertainty.
“This is a moment of global turbulence, not a Kenyan issue. We will be having a conversation on how to diversify our market so that we do not have overdependence on one market. It is time for us to upscale,” he added.
New tariff
The tariffs were announced by US President Donald Trump on Thursday, April 2, 2025, who cited ongoing trade imbalances and currency manipulation concerns as reasons for the decision.
According to Trump, the 10 per cent baseline tariff will apply to all US imports from 185 countries, including Kenya. Higher duties are expected for some of America’s top trading partners.
“Today we are standing up for the American worker, and we are finally putting America first,” Trump said, describing the decision as “one of the most important days, in my opinion, in American history.”
Trump argued that the VAT system employed by many countries, including Kenya, creates an unfair disadvantage for American products. When US goods are exported to these countries, they become more expensive due to VAT, making them less competitive. In contrast, exports from those countries to the US often face fewer restrictions or taxes.