Prime Cabinet Secretary Musalia Mudavadi has acknowledged that Kenya will face a prolonged recovery period from the effects of policy changes implemented by former US President Donald Trump’s administration, including the 10% reciprocal tariff that was imposed last Wednesday.
Speaking at the Inaugural Africa Exchange Meeting in Nairobi on Monday, April 7, Mudavadi emphasized that the Kenyan government must act swiftly to mitigate the impact of these policy shifts on various sectors.
According to the Cabinet Secretary for Foreign Affairs, both Kenyans and Africans more broadly must prepare for a lengthy adjustment period.
He pointed out that reversing the effects of recent US policy changes, including cuts to the United States Agency for International Development (USAID), could take years.
“Regarding the current situation in the US, we must brace ourselves for a long journey.
The policies being implemented by the US administration will be difficult to undo.
Once these decisions are in place, it will take a long time to reverse them,” Mudavadi remarked.
“It could take decades, or even longer, to undo some of these policy shifts. So, we need to begin preparing ourselves for these changes,” he added.
Mudavadi also urged the government to begin exploring sustainable funding solutions for sectors that have traditionally relied on US grants and aid.
He stressed the importance of prioritizing essential sectors such as health and education, which are expected to be especially vulnerable to the impacts of shifting US policies.
Mudavadi’s statements come after a significant blow to Kenya-US trade relations, with Trump signing an executive order on Wednesday that imposed a 10% reciprocal tariff on all Kenyan exports to the US.
The new tariff threatens to disrupt Kenya’s trade with the US, which is valued at sh 109.7 billion (USD 784 million), targeting key industries such as textiles, tea, and coffee.
These sectors were previously protected under the African Growth and Opportunity Act (AGOA).
The policy shift is expected to lead to reduced exports, potential job losses, and declining revenues for Kenyan businesses that rely on access to the US market.
The executive order, which affects several countries, came just weeks after Trump directed his administration to impose additional tariffs on nations that apply value-added tax (VAT) on US products.
On Saturday, the Kenya Association of Manufacturers (KAM) called on Trump to reconsider the 10% tariff, warning that the levy would significantly harm Kenya’s price competitiveness in the US market, putting exporters at a disadvantage and undermining trade benefits previously secured under past agreements.
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