NAIROBI, Kenya – Kenya is ramping up efforts to diversify its trade relationships to cushion its economy from external shocks, including the 10 percent baseline tariff imposed on its exports by the United States.
Trade Cabinet Secretary Lee Kinyanjui emphasized the importance of broadening the country’s trade portfolio during his remarks at the Commonwealth Enterprise and Investment Council’s Commonwealth Trade and Investment Summit in London this week.
Kinyanjui pointed out that while the United States remains a significant market for Kenya’s textile and apparel exports, the recent trade policy shift by the Trump administration—which imposes reciprocal tariffs on Kenya and 24 other African countries—has added strain to the country’s economic outlook.
The U.S. tariffs, part of a broader move to counter trade imbalances, are part of what President Trump has described as an “economic independence” strategy, which also affects countries like China, Japan, and the European Union.
“Our goal is to diversify and create more trade partnerships so that when one market faces challenges, the impact on the economy is minimized,” Kinyanjui said, addressing the global audience in London.
This shift in strategy is expected to strengthen Kenya’s trade relations with regions such as Europe, Asia, the Middle East, and Latin America, ensuring a more resilient and diversified trading landscape.
Intra-Africa trade, however, remains a priority. Despite Africa being Kenya’s largest export market, intra-continental trade still accounts for a relatively low 14 percent of the region’s total trade.
Kinyanjui emphasized the need for greater integration within Africa, focusing on improving trade infrastructure, harmonizing standards, and enhancing financial services for businesses.
This aligns with the objectives of the African Continental Free Trade Area (AfCFTA), which aims to increase intra-African trade and reduce reliance on external markets.
“The key to economic growth within Africa is to create synergies and opportunities for internal trade. We must enhance connectivity across the continent, not only physically but also in terms of financial and trade systems,” Kinyanjui noted.
He further highlighted the necessity of bolstering Africa’s industrial base, citing the importance of the continent’s abundant rare earth minerals and natural resources for global industrialization efforts.
Kenya’s push for regional integration within Africa is also closely tied to the need to move away from exporting raw materials at low prices.
Kinyanjui underlined that as African countries pursue industrialization, there must be a strategic shift toward value-added products that can be sold at higher prices on global markets.
This would allow African countries to retain more value from their raw materials rather than exporting them in their raw form and later importing expensive finished goods from abroad.
On a national level, Kenya remains keen to attract more foreign direct investment (FDI) as part of its broader industrialization plans.
Kinyanjui’s ministry is targeting to double FDIs over the next few years, aiming to grow annual foreign investments from $800 million (Sh103.6 billion) to $1.6 billion (Sh207.3 billion).
This push is designed to support key sectors of the economy and contribute to long-term economic stability.
Kenya’s participation in the Commonwealth Economic Forum underscores its growing role as one of the fastest-expanding economies in the region.
Over 60 percent of Kenya’s global trade is with Commonwealth nations, further reinforcing the country’s desire to strengthen ties with other Commonwealth countries.
