Trump stings Kenya with 10% tariff

It's all about trade tariffs, changes in the Kenyan corporate cloud, and more…

Howdy! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter.

Trump Stings Kenya with 10% tariff

US President Donald Trump has imposed a 10% tariff on Kenyan goods starting April 9th, citing trade imbalances and barriers as key reasons for the move.

Kenya’s exports to the US totaled KSh 5.8 billion in January, with a trade deficit leaning heavily in favor of the US. The White House stated that these tariffs will remain in place until the trade deficit issue is resolved. Kenya’s tariff structure, already heavy on goods like secondhand clothing and agricultural products, may now face new challenges.

What’s unclear is whether the impending expiration of the AGOA trade agreement will soften the blow. It seems Kenya might need to rethink its strategy to navigate the evolving global trade landscape. Here is the full story

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Today's Poll 

How Kenya has responded to the US Tariff Policy…

A statement from the Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, has noted that Kenya's trade relationship with the United States will undergo a shift as the reciprocal tariffs take effect.

He acknowledged that while Kenyan exports to the US will now face a 10% tariff, the rate is lower than those imposed on major textile competitors. This, he said, presents a significant opportunity for Kenya to gain a competitive edge in the textile sector and attract US buyers seeking alternative sourcing hubs. The Kenyan government, through the Ministries of and Foreign Affairs, is actively developing strategies to enhance exports and encourage investment in key sectors to capitalize on this tariff adjustment.

ANALYSIS

KCB Group Outshines Safcom in Profit Race

KCB Group has overtaken Safaricom to become Kenya’s most profitable corporate entity, posting a record KSh 61.8 billion Profit After Tax (PAT) for 2024.

The significant growth was driven by a 33.9% increase in non-funded income, fueled by a surge in forex income and strong interest from loans and government securities. Meanwhile, Safaricom's group profitability declined to KSh 42.7 billion, with losses from its Ethiopian operations dragging down its performance, despite Safaricom Kenya's impressive PAT of KSh 82.65 billion.

Equity Group secured second place with a PAT of KSh 48.8 billion, while Kenya Power, Cooperative Bank, and NCBA rounded out the top six most profitable corporate groups. KCB’s stellar results reflect the company's strategic push to diversify its income sources, while Safaricom's Ethiopia venture continues to test its group profits. In short, KCB’s growth is unstoppable, and Safaricom’s Ethiopian gamble has yet to pay off. Here are more details»»»»»

Markets at a Glance…

More Stories: 

• Startups. Kenyan social commerce startup ‘Chpter’ has introduced Pluto, its WhatsApp API suite, into a standalone subsidiary, marking a strategic shift as businesses increasingly rely on messaging apps for sales and customer engagement.

• Labour. The Central Bank of Kenya (CBK) has been ordered to pay a former employee Ksh 5,008,000 in damages after a court found it subjected her to discrimination and wrongfully terminated her employment due to her mental health.

• Finance. The Banking sector in Kenya experienced its first decline in asset value in decades, with the total asset value of listed banks-excluding Bank of Kigali-falling to KSh 7.75 trillion, a 4.15% drop.

INSIGHT  

How AI is Changing Credit Scoring in Kenya’s Digital Lending

Across the country, fintech lenders are using artificial intelligence to redefine credit scoring, bringing millions of “credit-invisible” Kenyans into the financial fold. Here is how they are doing it»»»»»

On your watchlist

Yesterday's Poll Results 

Do you think Kenyan banks will recover from their first asset decline in 20 years?

🟩🟩🟩🟩🟩🟩 Yes (83%)

🟨⬜️⬜️⬜️⬜️⬜️ No (17%)