NAIROBI, Kenya, April 3 – Kenya’s procurement regulations favor local firms and goods, hindering foreign companies’ participation, the Office of the United States Trade Representative (USTR), a body of the US federal government that promotes and develops American trade policies, has revealed.
According to the 2024 National Trade Estimate Report on Foreign Trade Barriers, intellectual property protection, state-owned enterprises’ dominance as well as service, digital trade and investment barriers complicate foreign trade in the country.
Tariffs play a significant role, with Kenya’s applied rates averaging 14.3 percent, notably higher for agricultural products at 24.5 percent.
Kenya applies the East African Community’s Common External Tariff, with varying rates based on product types.
“Kenya applies the East African Community (EAC) Customs Union’s Common External Tariff (CET), with four tariff bands: (1) zero percent duty for raw materials and inputs, (2) 10 percent duty for processed or manufactured inputs, (3) 25 percent duty for finished products, and (4) 35 percent for a list of products the EAC concluded would promote regional integration and domestic industrial sectors,” stated the report.
It added that among the imports that are impacted by the 35 percent fourth tariff band are U.S. exports of secondhand clothing and environmentally cleaner cooking products.
Many textiles and agricultural products are classified as ‘sensitive items’ under the EAC and, as a result, are subject to ad valorem tariff rates above 35 percent.
This includes rates of 50 percent for textiles, 60 percent for most milk products, 50 percent for corn and corn flour, 75 percent for rice, 60 percent for wheat flour, and 100 percent for sugar.
Non-tariff barriers include import bans and customs procedures.
The Pre-Export Verification of Conformity program requires inspections in the country of origin, adding complexity and costs for importers.
Sanitary and phytosanitary barriers also impact imports, with stringent standards affecting products like corn.
