NAIROBI, Kenya, Apr 9 — Central Bank of Kenya (CBK) Governor Kamau Thugge has downplayed the potential impact of the proposed 10 percent tariff hike on Kenyan exports to the United States, saying it is unlikely to significantly affect the economy.
Thugge said Kenya exports goods worth approximately $650 million to the US annually, and even in an extreme scenario, the country could lose about $100 million in export earnings due to the tariff increase.
“While that’s a notable amount, it remains relatively small compared to our GDP of over $122 billion, and we don’t expect it to significantly affect the balance of payments or the exchange rate,” Thugge said.
The remarks come amid growing concerns over Washington’s review of trade preferences under the African Growth and Opportunity Act (AGOA), which has granted duty-free access for certain African exports.
Kenya has been a top beneficiary of AGOA, with textiles, apparel, coffee, and tea among the major export products to the US market.
Thugge’s reassurance signals that while the tariff adjustment poses a risk, the broader macroeconomic fundamentals remain stable.
