Kenya Roundup: Projected gains from US tariff, UN plastic treaty hosting, forex drop

Kenya expected to gain from US tariff hikes on regional competitors

Kenya is set to gain from recent US tariff increases on some African and Asian countries, Trade Cabinet Secretary Lee Kinyanjui has said. Speaking on Capital FM, Kinyanjui noted that Kenya’s textile exports now enjoy a competitive edge due to lower US tariffs. This gap, he added, could attract companies from countries with higher tariffs, such as South Africa, Uganda, Vietnam, and Sri Lanka, to relocate operations to Kenya. Washington imposed a 10% tariff on Kenyan goods, while charging 15% and 30% for Ugandan and South African commodities, respectively. 

Kiambu MPs call for separate recognition from Mt Kenya region

Kiambu County legislators are pushing for the county to be recognised separately from the wider Mt Kenya bloc to secure a larger share of national resources. Speaking at a public forum in Karatu village on August 6, Gatundu North MP Elijah Njoroge Kururia said Kiambu’s high population justifies independent allocation of positions and funds.

Kenya steps up push to host UN global plastics treaty secretariat

Kenya is intensifying its bid to host the secretariat of a planned global plastics treaty at the UN Environment Programme (UNEP) headquarters in Nairobi. President William Ruto has led the lobbying effort. The country’s delegation, headed by Environment PS Festus Ng’eno, is advocating for a strong treaty addressing chemical additives, problematic plastics and plastic waste. Talks at the resumed Intergovernmental Negotiating Committee session in Geneva run until August 14, with over 3,700 participants from 184 countries. 

Kenya struggling to turn foreign investment into industrial growth

Foreign direct investment (FDI) in Kenya is failing to drive industrial growth due to misallocation of funds, a Kenya Institute for Public Policy Research and Analysis (KIPPRA) study showed. The report says most FDI bypasses manufacturing, mining and construction, instead going to services like retail, finance, ICT and hospitality. Even in industrial sectors, investment often takes the form of greenfield projects that are slow to deliver results or misaligned with local needs.

Kenya’s foreign exchange reserves fall by $509 million in 3 weeks

Kenya’s official foreign exchange reserves have declined by $509 million (KSh 65.8 billion) in three weeks, Central Bank of Kenya (CBK) data showed. The reserves fell from $11.2 billion (KSh 1.45 trillion) on July 10 to $10.69 billion (KSh 1.38 trillion) on July 31, largely due to external debt repayments and delays in securing new foreign currency loans. The decline highlights risks from Kenya’s rising public debt, now at KSh 11.51 trillion, with KSh 5.03 trillion owed to external lenders.