Nairobi — Kenya's exports to the United States face a fresh challenge following a tariff shift by the U.S., a move that could further widen Kenya's trade imbalance, currently at Sh1.7 trillion (12 percent of GDP).

The Kenya National Chamber of Commerce and Industry (KNCCI) has raised concerns over the new trade policy, warning that it could significantly impact exporters, investors, and key industries reliant on U.S. markets.

While Kenya is unlikely to retaliate with higher import tariffs, the KNCCI plans to convene an urgent meeting with stakeholders to discuss mitigation strategies.

"The reciprocal tariffs by the Trump Administration are a wake-up call to reassess Kenya's economic structure since 1960. This presents a unique opportunity to build resilient local industries, particularly in IT, digital technology, equipment, and machinery, to drive industrialization," KNCCI noted in a statement.

To counter the 10 percent tariff increase, the Chamber, in partnership with the Ministries of Trade, Investments & Industry, and Foreign & Diaspora Affairs, will explore alternative export opportunities and new global markets.

Meanwhile, policy support and lobbying efforts will be intensified to enhance Kenya's ease of doing business and help investors navigate the evolving trade landscape.

The tariff hike also reinforces the need for Africa to accelerate intra-regional trade by facilitating capital flows, expanding trade-in services, and opening domestic markets to enhance self-reliance and economic resilience.