The United States government has imposed a 10% tax on Kenyan exports in response to Kenya’s 16% value-added tax (VAT) on American goods, escalating trade tensions between the two nations.
The tariff, announced by the Trump administration, is expected to impact key Kenyan exports such as agricultural products, textiles, and other goods entering the U.S. market.
The decision comes as Washington pushes back against what it perceives as unfair trade barriers imposed by Nairobi.
A White House statement indicated that the levy would remain in place unless Kenya negotiates with the U.S. government to remove or adjust its VAT policy.
“The United States will not stand by as American businesses face unfair taxation abroad. Kenya must reconsider its 16% VAT on U.S. products if it wants continued preferential access to our market,” the statement read.
The U.S. is a significant trading partner for Kenya, and increased tariffs could hurt exporters who rely on the American market.
