President Donald Trump’s administration has intensified its “America First” trade agenda by imposing a flat 10 percent tariff on all imports into the United States, a move that poses fresh challenges for Kenya’s textile and apparel industry.
The new tariff took effect on July 31, following the expiry of temporary suspensions earlier in July. While Kenya faces the lowest tariff band at 10 percent, the decision undercuts years of preferential trade under the African Growth and Opportunity Act (AGOA), which expires in September 2025.
Kenya’s Export Reliance on the US
Kenya exports textiles, apparel, agricultural products, and manufactured goods to the US, with textiles accounting for the lion’s share. According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025, exports to the US under AGOA rose to Sh60.6 billion in 2024 from Sh50.8 billion the year before. Employment in AGOA-certified export firms also climbed to 66,804 workers, representing a 15 percent increase.
The World Bank and the Italian Trade Agency report that more than 70 percent of Kenya’s textile and apparel exports head to the US, sustaining over 75,000 jobs in Export Processing Zones. These jobs are now at risk under the Trump tariffs.
Wide-Ranging Economic Impact
Industry experts warn that the tariffs will destabilize Kenya’s export-driven sectors, widening the trade deficit, reducing dollar inflows, and exerting new pressure on the shilling.
Dr. Juma Mukhwana, Principal Secretary for the State Department of Industry, cautioned that Trump’s policy could erode Kenya’s trade advantage. “AGOA historically provided duty-free access for over 6,000 Kenyan products to the US. By overriding these benefits, Kenya faces serious uncertainty,” he said.
The PS added that Kenya must use this challenge to reconsider its trade strategy, including strengthening intra-African trade under the African Continental Free Trade Area (AfCFTA) and boosting value addition domestically.
Seeking Alternatives
Kenya may now need to intensify lobbying efforts in Washington to extend AGOA or secure exemptions on key exports. Analysts suggest that aligning with US businesses that benefit from Kenyan imports could be a useful strategy. At the same time, the government is urged to accelerate its shift from raw and semi-processed exports to higher value-added products, while improving infrastructure, energy affordability, and digital transformation to sustain global competitiveness.
For now, however, Trump’s tariff move has introduced a new layer of uncertainty at a critical moment, threatening to undo the gains Kenya has made in textile exports and jeopardizing thousands of livelihoods tied to the US market.
