A recent survey by the Central Bank of Kenya reveals that a large number of Kenyan companies are struggling with the fallout from US trade policies, with six out of ten businesses reporting direct effects from tariffs and other regulatory changes implemented under former President Donald Trump.
The study highlights how policy shifts in the US continue to influence local firms, especially those whose operations or funding depend on American markets.
The survey, conducted in January among more than 1,000 chief executives spanning sectors such as tourism, real estate, information and communication technology, professional services, agriculture, manufacturing, and trade, shows that companies providing professional services were most affected.
About 17.5 percent of executives in this sector reported challenges linked to US tariffs and policy adjustments. Companies in ICT, telecommunications, tourism, hotels, and restaurants followed closely, with 15.8 percent of CEOs in each category noting impacts on their operations.
“The survey assessed the extent to which recent US trade tariffs and policy changes have affected domestic firms. Most respondents reported that they continue to be impacted by these developments,” the CBK said, highlighting the ongoing challenges faced by businesses.
Other sectors also experienced disruptions. Financial services companies reported 12.3 percent of executives affected, while 10.5 percent of agricultural firms said they had felt the impact.
Manufacturing and trade each recorded seven percent of firms disrupted, and healthcare and real estate had 5.3 percent of companies reporting difficulties.
According to the survey, the most pronounced effects include interruptions to supply chains and rising costs of goods and services. “In particular, the professional services, ICT, hospitality, financial services, and wholesale and retail trade sectors were reported to be the most affected,” it noted.
President Trump first introduced trade tariffs on imports from all countries in April of the previous year, setting levies ranging from 10 to 50 percent as part of a policy to prioritise American manufacturing.
Although the US Supreme Court recently ruled that the tariffs exceeded presidential authority, Trump re-established them under separate legislation, initially at 10 percent and then raising the rate to 15 percent within two days.
He defended the measures, saying they encourage investment and manufacturing in the US, and criticized the Supreme Court ruling. The tariffs raise the cost of goods exported to the US, making them less competitive compared to locally produced items and reducing their attractiveness to American consumers.
Beyond tariffs, other policy changes, such as the suspension of USAid funding and aid programs, have also affected Kenyan businesses. Companies that relied on these resources for supplying goods or providing services report market losses and job cuts, underlining the broader economic implications of policy shifts in the US.
Kenya’s reliance on the US market remains significant. In 2024, the country exported goods worth Sh94.3 billion, largely through the African Growth and Opportunity Act, which supported exports valued at Sh60.6 billion.
This dependence amplifies the impact of policy changes on local firms, as disruptions in the US directly ripple back to domestic operations.
