The decision by the US to slap a 10 percent tariff on all Kenyan exports must have sent shockwaves through Kenya’s export processing zones (EPZ) textile sector—a vital artery of our economy.
For an industry that has flourished under the African Growth and Opportunity Act (Agoa), granting duty-free access to the US market, this tariff is a brutal test of resilience.
It threatens not just economic growth but the dreams of thousands of Kenyan workers. Kenya must act swiftly to safeguard its textile industry and chart a new path forward.
The EPZ textile sector is a core employer for residents of Kitengela and AthiRiver in particular. In 2022, it accounted for over 90 percent of Agoa apparel exports. It employed an average of 1,628 to 2,062 workers per enterprise between 2018 and 2022. The US is a linchpin market.
The sector has fuelled a 10.8 percent export growth and a 7.2 percent rise in capital investment, creating 15 percent of Kenya’s new formal-sector jobs in 2022. Yet, the 10 percent tariff upends this progress. US importers now face higher costs, making Kenyan textiles less competitive.
A decline in US demand could shut factories, mirroring Mexico’s $8.9 billion textile export loss from a similar tariff. The ripple effect would deepen Kenya’s economic inequality, leaving workers in despair.
As a strategic ally hosting US military bases, Kenya deserves better. As Foreign Affairs Cabinet Secretary Musalia Mudavadi warns, “Trade barriers undermine trust.”
A breakdown in talks could push Kenya toward China, shifting East Africa’s geopolitical balance. The EU, where we signed an Economic Partnership Agreement in 2023, and Asia offer alternatives, but challenges abound—EU quality standards are stringent, and Asian markets are dominated by low-cost producers like Bangladesh.
This US tariff is a clarion call. Kenya must diversify its export base, leveraging the African Continental Free Trade Area (AfCFTA) to tap into South Africa’s $60 billion retail market.
We must innovate—adopting sustainable practices like organic cotton farming, as piloted by the Kenya Cotton Development Project, to attract eco-conscious global buyers.
The stakes are monumental, not just for the industry but for workers, whose dreams for their families in the balance. Kenya cannot afford to falter.
The writer is the founder of Goldfish PR Media & Communications.
