Prime Cabinet Secretary Musalia Mudavadi has raised concerns about how Kenya’s economy could suffer for a long time following new policy changes introduced by US President Donald Trump.
One of the key changes includes a 10 per cent reciprocal tariff imposed on Kenyan exports to the US last Wednesday.
Speaking at the Inaugural Africa Exchange Meeting held in Nairobi on Monday, April 7, Mudavadi stressed that Kenya must act quickly to manage the effects of these new American policies.
He pointed out that reversing some of these decisions will take a long time and warned that the country should prepare for an extended period of economic challenges.
Mudavadi, who also serves as the Foreign Affairs Cabinet Secretary, said that not only Kenyans but Africans in general must get ready for a tough road ahead.
He explained that the cuts made to support from the United States Agency for International Development (USAID) and other policy changes will not be easy to undo.
“Looking at what is happening in the United States, we must prepare ourselves for a difficult and lengthy adjustment.
The actions being taken by the US administration will take years—and possibly decades—to reverse,” Mudavadi said.
“This is not something we can fix overnight, so we must begin adjusting our plans now, keeping these global changes in mind.”
Mudavadi also urged the Kenyan government to start exploring ways to fund essential sectors that have long relied on American aid and donor support.
He stressed that sectors like health and education should be protected and prioritized, as they are likely to be hit hard by these shifting US policies.
His comments come at a time when Kenya’s trade relationship with the US is facing major setbacks. President Trump’s executive order to impose a 10 per cent tariff on all Kenyan goods entering the US has created uncertainty, especially for exporters.
This tariff threatens Kenya’s Ksh109.7 billion (about USD 784 million) trade volume with the US.
Products such as textiles, tea, and coffee—exports that previously benefited from the duty-free privileges under the African Growth and Opportunity Act (AGOA)—are now in danger of losing their competitive edge.
The new tariffs could lead to a reduction in exports, loss of jobs, and a drop in income for many Kenyan businesses that rely on the American market.
This new executive order from Trump’s administration also comes shortly after he directed additional tariffs on countries that charge VAT on American products, signaling a tougher and more protectionist approach to international trade.
In response to these developments, the Kenya Association of Manufacturers (KAM) has appealed to President Trump to reconsider the tariffs.
KAM’s Chief Executive Officer, Tobias Alando, warned that the 10 per cent tariff would severely affect Kenya’s competitiveness in the US market.
He said that exporters would face major challenges and risk losing the benefits they have enjoyed under past trade agreements.
Alando added that unless the US government rethinks its position, the new policy will reverse the progress Kenya has made in growing its exports to the American market.
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