​Prime Cabinet Secretary Musalia Mudavadi

​Prime Cabinet Secretary Musalia Mudavadi has cautioned Kenyans to prepare for economic challenges following the United States’ imposition of a 10% baseline tariff on imports from numerous countries, including Kenya.

Speaking at the inaugural Africa Xchange meeting, Mudavadi emphasized the necessity for the nation to adapt to the evolving international trade landscape.​

“Observing current global developments, it’s evident that democratic processes are becoming increasingly complex. Whether we examine trends in Africa or the United States, achieving an absolute majority is becoming exceedingly challenging,” he remarked. “Therefore, events unfolding in the U.S. and other parts of the world suggest that we must brace ourselves for the long haul.”​

Kenya has been leveraging the African Growth and Opportunity Act (AGOA) to maintain tariff-free access to the U.S. market. However, with the recent tariff impositions, concerns have arisen about the future of this arrangement.

Foreign Affairs Principal Secretary Korir Sing’oei highlighted that Kenya could continue exporting tariff-free to the U.S. until AGOA’s current framework expires on September 30, 2025. He also assured efforts to negotiate a waiver for the newly imposed tariffs.​

“While the tariffs may be among the lowest, we shall be vigorously advocating for their waiver,” Sing’oei stated. He further noted that since AGOA is a Congressional framework for market access to the U.S. by African exporters, the new tariffs imposed by President Trump might not be immediately applicable until the law lapses or is repealed earlier by Congress.​

The Trump administration’s recent announcement includes a 10% universal tariff on nearly all U.S. imports, with higher duties on major trading partners. This move has raised concerns about potential inflation, increased consumer prices, and the possibility of retaliatory measures from affected countries.

Economists warn that these tariffs could lead to slower economic growth and even a global recession.

Kenya, as a significant AGOA beneficiary, faces uncertainties regarding its trade relations with the U.S. Other African nations, including Rwanda, Burundi, Eritrea, South Sudan, Sudan, Ethiopia, and Uganda, are also subjected to the 10% base tariff.

The situation underscores the need for Kenya to diversify its trade partnerships and strengthen its economic resilience in response to shifting global trade dynamics