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During the first half of President Trump’s second term, familiar themes of his “America First” policy have continued to dominate the administration’s agenda. Following the expiry of the initial 90-day suspension of tariffs on 9 July 2025, and a subsequent extension to 1 August 2025, President Trump has issued a new Executive Order revising the reciprocal tariff rates.
25 August 25
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On 31 July, President Trump imposed additional ad valorem duties on the goods of certain trading partners, substituting the additional duties previously imposed. Trump further announced that his administration will maintain a flat 10% tariff on all goods imported into the U.S., ostensibly to protect American producers and reduce reliance on foreign markets. Although Kenya is subject to the lowest tariff rate of 10%, the imposition of this rate is already having a significant impact on the local economy.
Kenya’s exports of agricultural products, textiles, and manufactured goods are all affected by Trump’s tariffs. The new measures threaten years of duty-free access to the U.S. under the African Growth and Opportunity Act (AGOA), already in doubt ahead of its September 2025 expiry. In 2024, exports under AGOA were worth KES 60.6 billion (approx. USD 469 million), supporting over 66,000 jobs in accredited export firms. According to the World Bank and ICE Italian Trade Agency, more than 70% of Kenya’s textile and apparel exports go to the U.S., employing over 75,000 workers, jobs now at risk.
Dr Juma Mukhwana, Principal Secretary (PS) for the State Department of Industry in the Ministry of Investments, Trade and Industry (MITI), noted that AGOA has historically provided duty-free access for over 6,000 Kenyan products. By overriding these benefits, Kenya’s trade advantage is being eroded, while uncertainty about AGOA’s future deepens complexity. The flat tariff is destabilising the textile sector, hurting exports, widening the trade deficit, reducing dollar inflows, and pressuring the Kenyan shilling. PS Mukhwana suggested Kenya could re-strategise to sustain its apparel market, review industrial performance, and boost intra-EAC trade, while remaining cautious not to appear retaliatory.
Kenya may need to intensify diplomatic engagement with the U.S., building coalitions with American businesses that benefit from AGOA to lobby Congress for its extension, while seeking exemptions for key exports. At the same time, Kenya should diversify markets by strengthening AfCFTA trade and leveraging external partners such as the EU, UK, China, and the UAE under existing agreements. Domestically, Kenya must shift towards higher value-added exports by investing in processing, branding, and infrastructure to strengthen global competitiveness.
In this legal alert, we analyse the impact of President Trump’s revised tariff regime on Kenya, particularly its impact on AGOA exports, the textile and apparel industry, and broader economic stability.
Click here to download and read the full alert.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Daniel Ngumy and Luisa Cetina.
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Contributor
Faith Chelangat – Consultant