Kenya is at risk of losing its preferential market access to the United States under the African Growth and Opportunity Act (AGOA) due to allegations of facilitating the transshipment of Chinese goods to evade U.S. tariffs.

• Kenya is identified as a "small, opportunistic Chinese target" in a new White House report titled "The Great Transshipment Scam."
• The report implicates Kenya in a network that allegedly allows Chinese goods to be relabeled, repackaged, or lightly processed before entering the U.S. market.
• Failure to address these practices could lead to penalties including "immediate interdiction, penalty tariffs, sanctions, and potential loss of market access," affecting Kenya's annual exports to the U.S., which are approximately Ksh71 billion.