Kenya Set to Gain as Trump Slaps South Africa, Uganda, Others With Higher Tariffs, CS Lee Kinyanjui
- Trade Cabinet Secretary Lee Kinyanjui stated that Kenya stands to benefit from recent US tariff hikes that target countries such as South Africa and Uganda
- Kenya currently faces a 10% tariff on its exports to the US, which is lower than Uganda's and South Africa's, giving Kenyan exporters a competitive advantage
- A Kenyan delegation of trade and investment experts will travel to Washington, DC, on August 20 to negotiate tariff reductions and address trade barriers
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Trade Cabinet Secretary (CS) Lee Kinyanjui has said that Kenya is poised to benefit from recent United States tariff hikes.
Source: UGC
Speaking on Tuesday during an interview on Capital FM, Kinyanjui explained that the changes, though initially viewed as a challenge, have given Kenyan exporters a competitive edge in the US market, particularly in the textile sector.
“When you are looking at the issue of tariffs, the most important thing is not exactly how much you are going to be charged but the differential between you and your competitors,” Kinyanjui stated.
“Assuming you have four countries exporting to the US and you are all selling the same commodity, you want to check what your competitors are charged. Kenya is currently at 10%, while Uganda is at 15% and South Africa at 30%. This gives our exporters an advantage,” he added.
Kenya to attract investments
The CS noted that the disparity in tariffs is expected to attract more companies from nations facing higher levies to set up operations in Kenya.
“This alone is going to trigger companies from South Africa, Uganda, Vietnam, Sri Lanka, and other countries with increased tariffs to consider relocating their operations to Kenya,” he said.
Kinyanjui emphasised that although the 10% tariff is not ideal, the relative difference compared to the tariffs placed on the competitors positions Kenya favourably.
Kenya to send negotiation team to the US
Kinyanjui also announced that a delegation of trade and investment experts will travel to Washington, DC, on August 20 to engage with US officials on tariff reductions and trade barriers.
He emphasised that the talks are crucial amid ongoing uncertainty over the African Growth and Opportunity Act (AGOA) and shifting global trade policies.
“We are a critical partner of the US both now and historically. Kenya is favourably placed, and we have already filed an appeal against the tariffs. Our team will travel to follow up on progress,” he said.
According to Kinyanjui, discussions will focus on securing fairer trade terms, addressing restrictions imposed by President Donald Trump’s administration, and ensuring Kenyan goods continue to access the lucrative US market.
He expressed optimism that the upcoming talks would strengthen bilateral relations and create more opportunities for Kenyan exporters in the wake of the tariff shake-up.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
