Kenya faces potential economic challenges after US President Donald Trump announced a 25 per cent tariff on any country trading with Iran, following Tehran’s crackdown on anti-government protesters.
The directive, issued on January 12, 2026, states that “effective immediately, any country doing business with the Islamic Republic of Iran will pay a 25 per cent tariff on trade with the United States. This order is final and conclusive.”
While Iran’s main trading partners are China, Turkey, the UAE, and Iraq, Kenya has historically been a key trade partner, particularly in tea exports. Kenyan tea exports to Iran grew significantly, rising from 3.2 million tons in 2020 to 13 million tons in 2024, reflecting a deepening trade relationship.
Recent Kenya-Iran Cooperation
In early 2025, Kenya’s tea exports to Iran were temporarily halted after Iranian authorities raised quality concerns. However, discussions during the 7th Kenya-Iran Joint Commission for Cooperation in Nairobi, led by Prime Cabinet Secretary Musalia Mudavadi, sought to resolve the disruptions and strengthen trade ties.
The meeting included a Kenya–Iran business forum, connecting entrepreneurs and investors and promoting Kenya as a hub for Iranian businesses in East Africa.
Both countries pledged to expand cooperation in sectors including agriculture, manufacturing, ICT, food processing, renewable energy, and pharmaceuticals.
Potential Impact on Kenya
Trump’s latest announcement could place Kenya among the countries facing a 25 per cent tariff on US trade due to its economic links with Iran.
The directive coincides with US deliberations on possible military action against Iran over the ongoing protests, further complicating international trade dynamics.
Kenya’s government and exporters are now expected to assess the potential impact on tea exports and broader trade, while exploring strategies to mitigate the economic fallout.
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