Kenya has once again suffered a major setback after the United States President Donald Trump announced a 25 per cent tariff on countries trading with Iran.
President Trump on Monday, January 12, announced a 25 per cent tariff on any country trading with Iran, following the country's violent crackdown on the anti-government protesters.
"Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25 per cent on any business being done with the U.S. This Order is final and conclusive," Trump said on Truth Social.
While Iran's main trading partners are China, Turkey, the United Arab Emirates (UAE) and Iraq, Kenya has also long been the Asian country's trade partner, particularly in tea exports.
Iran has been a major importer of Kenyan tea, with volumes rising from 3.2 million tons in 2020 to 13 million tons in 2024, depicting the extent of the trade cooperation.
Towards the end of 2024 and into early 2025, Kenya’s tea exports to Iran faced setbacks after the Iranian authorities raised concerns over quality standards, a move that culminated in a temporary import ban.
However, in August last year, Kenya and Iran held fresh talks to deepen their economic ties during the 7th Joint Commission for Cooperation, which was held in Nairobi.
The meeting, which was presided over by Prime Cabinet Secretary Musalia Mudavadi, focused on resolving tea trade disruptions and expanding cooperation in agriculture and technology.
On the sidelines of the meeting, a Kenya–Iran business forum was also held, which linked entrepreneurs and investors, encouraging Iranian firms to use Kenya as an East African trade hub.
Both countries pledged closer investment cooperation in agriculture, manufacturing, ICT, creative industries, food processing, renewable energy, and pharmaceuticals.
Nonetheless, Trump's latest directive could now see Kenya join the long list of countries that risk being slapped with a 25 per cent tariff due to its economic ties with Iran.
Trump's tariff announcement comes as the U.S. government mulls possible military action against Iran over the protests, which it described as dangerous.
