Agro-processors should take advantage of the reciprocal tariffs on a number of countries by the US and increase exports to America.
Kenya National Chambers of Commerce and Industry (KNCCI) says the tariff increase to 10pc imposed on Kenyan products is significantly lower than the rates Kenya’s major competitors in the US textile market face.
Kenya is among 185 countries that were slapped with tariff increases ranging from 10 to 50pc by the US government.
Trade between Kenya and the U.S. is estimated to reach Ksh 177 billion with Kenya exporting Ksh 64.3 billion worth of goods while buying products worth Ksh 112.8 billion. Textiles, apparel, and coffee, account for over 40pc of Kenya’s exports to the U.S. market.
KNCCI says the move by the US government to increase tariffs on a number of nations will open up the market more Kenyan textile and apparel products.
According to the Kenya National Chamber of Commerce and Industry, the 10pc tariff on Kenyan products is significantly lower than the rates facing Vietnam ( at 46pc), Sri Lanka (at 44pc), Bangladesh (at 37pc), China (at 34pc), Pakistan (at 29pc), and India (at 26pc), which are Kenya’s major competitors in textile manufacturing.
Textile and apparel manufacturers have been encouraged to invest in facility upgrades, value-addition processes, and workforce development to meet anticipated increased demand. To mitigate against the new tariffs, manufacturers have been advised to increase value addition on coffee, tea, and horticultural goods destined for the US market.
However the chamber admits that the 10pc tariff will increase costs for exporters in the short term denying them much needed capital for expansion.
KNCCI further warns that any additional long-term protectionism policies by the US will reduce Kenya exporters market access, urging exporters to expand their international market.
