Central Bank of Kenya (CBK) Governor Kamau Thugge has sought to alleviate concerns over the proposed 10 per cent tariff hike on Kenyan exports to the United States, stressing that the potential economic impact would be minimal.

Thugge described the likely effects as unlikely to disrupt the economy significantly, despite growing concerns linked to the ongoing review of trade preferences under the African Growth and Opportunity Act (AGOA).

Kenya currently exports goods worth approximately $650 million annually to the United States, with the potential loss due to the tariff increase estimated at about $100 million.

"While that’s a notable amount, it remains relatively small compared to our GDP of over $122 billion, and we don’t expect it to significantly affect the balance of payments or the exchange rate," Thugge stated.

The governor’s comments come amid scrutiny of AGOA, a trade initiative that has provided Kenyan goods such as textiles, apparel, coffee, and tea with duty-free access to the US market.

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Despite the risk posed by the tariff hike, Thugge's assurance indicates that Kenya’s broader economic fundamentals remain resilient, and the country is not expected to face significant disruption.