Kenya Identifies Opportunities in US as Trump Imposes Tariffs on Exports 

‍In Summary:

• Kenya has revealed intentions to explore more business opportunities in the US after the Trump administration imposed a 10% tariff on Kenyan exports. According to Trade CS Lee Kinyanjui, Kenya enjoyed the lowest tariff rate, a move that will make Kenyan exports cheaper compared to other African countries. Countries facing higher tariff rates include South Africa (30%, Lesotho (50%), Mauritius (40%) and Nigeria (14%).
• Meanwhile, Kenya’s foreign affairs office detailed that the government would also lobby for exemption from new U.S. tariffs, citing protections under AGOA, which supports Ksh4.5B in monthly exports and over 150,000 jobs. 
• The U.S. has also imposed a 25% tariff on imported vehicles, effective immediately, with auto parts tariffs starting May 3. While aimed at boosting domestic manufacturing, the move is expected to raise car prices—including U.S.-assembled models—and push up used car, repair, and insurance costs.
  
  
• Kenya’s secondary bond market jumped 41% in Q1 2025 to Ksh651 billion as falling interest rates boosted demand for older high-yield bonds. A February 2024 infrastructure bond is now trading at a 21.6% premium.
  
  
• Precious metals and stone dealers in Kenya must register with the Financial Reporting Centre by April 11 or risk losing their licenses as the government cracks down on money laundering after a FATF greylisting.
  
  
• Global oil prices saw their steepest drop since 2022, with Brent and WTI down over 6%, after OPEC+ announced a surprise supply increase. The dip was worsened by recession fears tied to Trump’s broader tariff plan.
• The Nairobi Securities Exchange (NSE) aims to list 40 new companies and attract 9 million local retail investors by 2029.
• Parliament’s Budget and Appropriations Committee has rejected governors’ request for an extra Ksh132B in the 2025/26 budget, maintaining county allocations at Ksh405.06B. 

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Kenya has revealed intentions to explore more business opportunities in the US after the Trump administration imposed a 10% tariff on Kenyan exports. According to Trade CS Lee Kinyanjui, Kenya was facing the lowest tariff rate, a move that will make Kenyan exports cheaper compared to other African countries. Countries facing higher tariff rates include South Africa (30%, Lesotho (50%), Mauritius (40%) and Nigeria (14%). Meanwhile, Foreign Affairs PS Korir Sing’oei detailed that the country would lobby for a waiver. Sing’oei also allayed fears among exporters, explaining that the tariffs would still not take effect immediately given that the country still had protections under the African Growth and Opportunity Act (AGOA), which grants duty-free access to the U.S. until September 2025. However, concerns remain over AGOA’s future, which supports Ksh4.5 billion in monthly exports and over 150,000 jobs in Kenya’s textile sector, as reported by Money254.

In another report by The People Daily, The United States has imposed a 25% tariff on all imported vehicles starting Wednesday, with additional tariffs on auto parts set to begin May 3, a move expected to raise new car prices by thousands of dollars. While the policy aims to boost local manufacturing, analysts warn it will increase costs even for cars assembled in the US, as many rely heavily on imported components. Partial exemptions apply to vehicles made in Mexico and Canada using US-made parts. The tariffs are also expected to push up used car prices and auto repair costs, with potential knock-on effects on insurance premiums.

Secondary bond market activity in Kenya surged by 41% in Q1 2025, reaching Ksh651 billion, as falling interest rates boosted investor demand for older bonds offering higher yields. According to The Business Daily, with the Central Bank of Kenya cutting its benchmark rate to 10.75% from a peak of 13% last August, new government securities now offer lower returns, prompting investors to buy existing bonds at a premium. The most traded paper has been the 18.46% coupon infrastructure bond from February 2024, now trading as high as Ksh121.59 above its par value of Ksh100. The rally helped the Nairobi Securities Exchange record Ksh1.5 trillion in secondary bond turnover last year.

In a report by The Nation, the Budget and Appropriations Committee of the National Assembly has rejected a push by governors for an extra Ksh132 billion in the 2025/26 financial year. The committee allocated Ksh405.06 billion to counties, citing the national government's debt servicing obligations. Governors argued the need for more funds to address growing financial challenges, including the housing levy and NSSF contributions. This decision is likely to spark further disagreements between lawmakers and governors as they negotiate equitable share allocations.

Dealers in precious metals and stones in Kenya have until April 11, 2025, to register with the Financial Reporting Centre (FRC) or risk losing their trade permits as the government steps up efforts to combat money laundering. This move follows Kenya’s greylisting by the Financial Action Task Force (FATF) last year, which has triggered tighter scrutiny of the country's financial sector. According to The Business Daily, the directive targets all players in the supply chain—from miners and brokers to jewellers and scrap dealers—with registration set to be completed online. 

The Nairobi Securities Exchange (NSE) aims to list 40 new companies and attract 9 million local retail investors by 2029 in an effort to rejuvenate market activity. This ambitious strategy comes after a decade of low local participation, with foreign investors dominating, as reported by The Business Daily. 

In a report by Reuters, Global oil prices plunged more than 6% on Thursday—the sharpest drop since 2022—after OPEC+ unexpectedly announced a bigger supply increase of 411,000 barrels per day for May, raising fears of a market glut. Brent fell 6.42% to $70.14, while U.S. WTI dropped 6.64% to $66.95. The decline was compounded by recession worries sparked by President Trump’s new 10% tariff on most imports, even though oil and gas products are exempt. Traders now fear that surging supply and slowing demand could flood the market and deepen volatility.