The Port of Mombasa is experiencing significant repercussions from the escalating trade wars between the United States and China, leading to increased costs for traders. The Kenya Ships Agents Association (KSAA) reports that these global conflicts are indirectly affecting East Africa, particularly through rising import costs, volatile foreign exchange rates, and diminishing global demand for goods.

• The US imposed steep import tariffs, prompting China to retaliate by raising tariffs on US imports from 84 percent to 125 percent.
• Elijah Mbaru, Chief Executive Officer of KSAA, warned of widespread supply chain adjustments and financial market instability due to these trade measures.
• Kenya’s textile and apparel industry, a key beneficiary of the African Growth and Opportunity Act, faces a severe downturn as US buyers may shift to alternative suppliers, potentially leading to factory closures in Kenya.