A delegation from the United States is expected in Nairobi next week as the country seeks a deal to scrap the 10 per cent tariff imposed on Kenyan exports by President Donald Trump.
Principal Secretary State Department for Industry Juma Mukhwana said on Wednesday, Kenya’s position is to have the Africa Growth and Opportunity Act (Agoa) extended beyond the September deadline and the Kenya-US Strategic Trade and Investment Partnership (STIP) finalised.
“On the US situation, the Kenyan government has been very clear. We have the requests that we have put on the table. The 10 per cent tariff should be removed because we are already negotiating and are at the tail end of an agreement,” said Dr Mukhwana during the launch of the Route to Market Strategy 2025 by the Kenya Association of Manufacturers (KAM) in Nairobi on Wednesday.
He said if any issues need to be captured, then they must become part of the STIP agreement.
“Our Cabinet Secretary was in the US, and next week, we are expecting a delegation from the US. We already have something that we are working on so that the 10 per cent tariff is
removed and Agoa extended
,” said the PS.
The 10 per cent tariff imposed earlier this month was paused for 90 days as Kenya joined a host of other nations in renegotiating trade terms with the US.
America is a key market for Kenyan exports, which average Sh72 billion annually.
However, even as Kenya negotiates these agreements, the PS noted that local businesses are not fully maximising the bilateral deals brokered by the government.
Dr Mukhwana cited the Kenya-European Union (EU) Economic Partnership Agreement (EPA), which came into force last year.
“We are opening up the market, but those markets are
not being tapped into
. The volume of trade between Kenya and the EU has not grown since we signed an agreement,” he said.
The PS criticised local businesses, saying that as the government works to open up markets, they keep on pushing for protection from their competitors.
“We have opened the market, but I see industries saying, ‘please protect us,’” he said.
KAM Chief Executive Tobias Alando said the Route to Market Strategy is an opportunity for Kenya to position itself as a formidable player in global trade.
“The government has done its bit and signed a couple of trade agreements, and now the ball is in our court,” he said.
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The document has five pillars – market diversification and trade utilisation; digital preparedness and trade intelligence; compliance, sustainability and standards; financial resilience and risk mitigation and enhancing exports through clusters and value addition.
Mr Alando said the strategy is meant to have exporters in the country
expand while diversifying
from the two major products, tea and coffee, that Kenya has been known for.
He said in the current business environment, data will play a role, on what products are needed, which markets, and who they can be delivered.
“We do not fly by night exporters. You export today, you make good money, then the next order you cannot sustain,” he said.
By Graham Kajilwa