Why Trump Has Flagged Kenya as a Corruption Haven in New US Trade Report

President William Ruto shakes hand with US President Donald Trump after witnessing the historic signing of the DR Congo-Rwanda peace deal at the Institute of Peace in Washington DC on December 5, 2025.

The administration of former US President Donald Trump has raised fresh concerns over Kenya’s business environment, citing corruption as a major obstacle to trade and investment in a new government assessment.

According to the 2026 National Trade Estimate Report released by the Office of the United States Trade Representative, corruption remains the single biggest barrier facing American firms seeking to operate in Kenya.

The report paints a grim picture of the country’s procurement system, warning that government contracts are often influenced by graft, effectively locking out firms that are unwilling to engage in bribery or political patronage.

It further notes that US companies continue to face unfair competition from entities willing to bypass legal standards, with corruption reported at both national and county levels.

According to the report, Kenya has failed to consistently enforce its anti-corruption laws, exposing businesses to both direct and indirect demands for bribes from multiple government agencies.

“Corruption continues to be a significant barrier to trade and investment,” the report indicates, highlighting concerns over transparency and accountability in public tenders.

Government procurement was singled out as particularly vulnerable, reinforcing claims that only well-connected individuals and firms are more likely to secure lucrative state contracts.

Despite the concerns, trade between Kenya and the United States recorded notable growth in twenty twenty five, underscoring the strategic importance of the relationship.

US exports to Kenya rose by 28.5 percent to nine hundred ninety point eight million dollars, while imports from Kenya increased by sixteen point five percent to eight hundred fifty eight point nine million dollars.

This left the United States with a trade surplus of one hundred thirty one point nine million dollars, representing a sharp increase from the previous year.

However, the report cautions that trade volumes could be significantly higher if Kenya addressed persistent non-tariff barriers, excessive taxation and complex regulatory requirements.

The Kenya Revenue Authority came under criticism for costly pre-export verification requirements and inconsistent customs valuation practices that delay shipments and increase costs for exporters.

American agricultural products face particularly steep barriers, with average tariffs standing at twenty five point three percent, while sensitive goods such as dairy and sugar attract duties of up to one hundred percent.

In addition, a sixteen percent value-added tax on most goods and services further raises the cost of doing business.

The report also flags the Pre-Export Verification of Conformity programme as restrictive, noting that exporters must secure certification from a single designated firm or risk penalties at Kenyan ports.

Agricultural exporters face additional hurdles, including strict aflatoxin limits on maize imports and licensing requirements such as Letters of No Objection from veterinary authorities, which the report says are sometimes applied inconsistently.

Beyond trade, the US assessment identifies Kenya as a significant transit hub in the global illegal wildlife trade, linking the problem to corruption, organised criminal networks and weak enforcement capacity.

The findings come at a sensitive time, as Washington and Nairobi continue negotiations toward a potential bilateral trade agreement.

The report warns that progress on any deal could depend on Kenya implementing concrete reforms to tackle corruption, improve transparency and streamline its regulatory environment.