MARCH NEWSLETTER 2025

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U.S imposes 10% Export Tariff: How

Kenya can thrive amidst U.S. trade policy shifts

The United States has imposed a 10 percent reciprocal tariff on Kenya as part of President Donald Trump’s latest round of trade tariffs on all imports to America. Trump said he would impose a 10 per cent baseline tariff on all U.S. imports from 185 countries and higher duties on some of America’s top trading partners.

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Coffee Cupping in Brussels and Antwerp

Facts on Japan

Kenyan Designers Eye Japanese Market as Expo 2025 Osaka Approaches

Maureen Mambo - Editor-in-Chief

Mariam Maina - Editor

Contributors

Gertrude Mirobi

Irene Van De Graaf

Molly Wambui

Walter Kelvin Otieno- Layout

Since May 2000, Kenya has been exempt from tariffs when exporting to the world’s largest economy under the African Growth and Opportunity Act (AGOA), which expires this September.

What it means for Kenya

The Cabinet Secretary for Investments, Trade, and Industry Hon. Lee Kinyanjui has weighed in on United States President Donald Trump’s move to impose a 10 per cent reciprocal export tariff on Kenya beginning Wednesday, April 9, 2025 acknowledging that the decision comes with both pros and cons.

In contrast, he opined that the tariff would increase the cost of doing business for Kenyans exporting to the U.S.

In a statement, the Trade CS explained that the 10 per cent rate is lower than the rates imposed on other countries that export textiles such as Vietnam (46 per cent), Sri Lanka (44per cent), Bangladesh (37 per cent), China (34 per cent), Pakistan (29 per cent) and India (26 per cent).

He added that Kenya can capitalise on this by positioning itself as the source hub for US buyers, hence attracting businesses that seek to avoid higher costs from traditional suppliers.

He pointed out that Kenya could explore opportunities to process and manufacture goods that will become more expensive from countries with higher tariffs.

Further, he reaffirmed that the Ministry is working on a plan to enhance Kenya’s exports. “The Ministry is also working with stakeholders to identify key products and encourage investment in targeted sectors to maximize the benefits of this tariff shift,” he said.

To mitigate the issue, the CS recommended adjustments to be done within the supply chain sector such as expanding production to meet new demands.

“The Ministry is committed to managing this transition with Kenya’s best interests at heart. We will continue engaging stakeholders, strengthening partnerships, and implementing policies to support sustainable trade growth and economic resilience.

The reciprocal impositions are set to affect Kenya’s total goods trade with the United States, which stood at Ksh.196 billion in 2024.

Data from the United States Trade Representative’s office showed that Kenya exported goods worth Ksh.95.3 billion to the US and imported goods worth Ksh.101 billion.

Kenya can capitalise on this by positioning itself as the source hub for US buyers, hence attracting businesses that seek to avoid higher costs from traditional suppliers.

Hon. Lee Kinyanjui -CS Investments, Trade, and Industry.

Kenya's Coffee Cupping in Brussels and Antwerp

Mirobi I gmirobi@brand.ke

On March 25, 2025, the Kenyan Embassy in Brussels, Belgium hosted a coffee cupping event, bringing together European roasters, buyers, and coffee experts to experience the exceptional quality of Kenyan coffee. The event, a collaborative effort between the Agriculture and Food Authority (AFA) Coffee Directorate, Kenya Export Promotion and Branding Agency (KEPROBA), and New KPCU, was a strategic move to amplify Kenya’s foothold in Europe’s competitive coffee market.

The overwhelming response led to a followup cupping in Antwerp on March 28, further cementing Kenya’s commitment to expanding its presence in this key region.

Coffee cupping is the industry standard for evaluating coffee quality, where experts meticulously assess aroma, flavor, acidity, body, and aftertaste. The Brussels and Antwerp sessions showcased a diverse range of Kenyan coffees, including washed, natural, and anaerobic-processed beans from estates and cooperatives.

Key steps in the cupping process included:

1. Fragrance and aroma: Evaluating dry and wet grounds to detect floral, fruity, or earthy notes.

2. Flavor and acidity: Assessing brightness, complexity, and balance. Kenyan coffees were praised for their vibrant acidity and berry-like profiles.

3. Body and aftertaste: Noting mouthfeel and lingering flavors, with Kenyan coffees standing out for their clean, winey finish.

4. A standout moment came when a Belgian expert noted that one sample had a “unique taste not found in their market” a clear indication of Kenya’s untapped potential to cater to niche preferences.

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Key Takeaways from the cupping sessions

1. Buyer preferences

Buyers emphasized the need for consistent quality and transparent traceability to meet European standards.

2. Growing demand for specialty coffee

Coffees scoring 85+ on the Specialty Coffee Association (SCA) scale drew significant interest. This presents an opportunity for Kenyan farmers to experiment with innovative processing methods, such as anaerobic fermentation, to create distinct flavors that command premium prices.

3. The case for warehousing

Stakeholders recommended storing Kenyan coffee in Belgian warehouses to reduce lead times and ensure faster access for European buyers. This logistical advantage could enhance Kenya’s competitiveness in just-intime supply chains.

4. The power of storytelling

European consumers increasingly value the narrative behind their coffee—its origin, the farmers who grow it, and its journey from seed to cup. Branding Kenyan coffee with its terroir-specific profiles and emphasizing sustainability could strengthen its market appeal.

Kenya’s coffee export trends

• 2022/23: Kenya exported 47,957 metric tons (MT) of coffee, generating KSh 34.11 billion in earnings.

• 2023/24: Kenya exported 49,199 MT, with earnings climbing to KSh 38.37 billion.

• The growing shift toward direct sales underscores the rising demand for premium, traceable coffees in Europe.

Source: AFA Coffee Directorate

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Strategies for sustained growth

To capitalize on the momentum from Brussels and Antwerp, Kenya should focus on:

• Farmer empowerment: Training smallholders in advanced processing techniques (e.g., natural/ honey processing) to diversify flavor profiles and meet specialty market demands.

• Strategic partnerships: Collaborating with European roasters like Java and Moyee Coffee to secure long-term contracts and foster innovation.

• Diaspora engagement: Leveraging Kenya’s global diaspora as brand ambassadors to amplify the “Kenya Coffee” story in untapped markets.

• Supply chain efficiency: Investing in warehousing and blockchain traceability to enhance transparency and build buyer confidence.

The Brussels and Antwerp cuppings reaffirmed Kenya’s position as a producer of world-class coffee while highlighting areas for improvement particularly in quality control and market positioning. By addressing these gaps and doubling down on storytelling and innovation, Kenya can transform these cupping events into a springboard for longterm export growth.

As preparations begin for future events, one thing is certain: Kenyan coffee has a unique story to tell, and the world is ready to listen. The challenge now is to ensure that every cup served leaves a memorable impression, one that keeps buyers coming back for more.

Basic Facts on Japan

Expo 2025 Osaka is opening on April 13th, 2025. In preparation for travel to Japan, this atricle contains information that will help first-time travelers to Japan.

Japan, situated in northeast Asia, is a global superpower. Home to over 125 million people, Japan is the sixth most populous nation in Asia and the third largest country in the world. Itis made up of 14,125 islands, 430 of which are inhabited. The five largest islands in Japan are Honshu, Hokkaido, Kyushu, Shikoku and Okinawa.

Japan’s GDP per capita, which is the total value of goods and services produced in Japan divided by its population, is a key economic indicator reflecting the average standard of living and economic output per person.in 2023, its GDP per capita was $33,898, ranking it 36th globally.

Osaka

Osaka is a major city located in the Kansai region on Honshu Island. It is the third most populous city in Japan after Tokyo and Yokohama. Osaka is a major financial center of Japan, and it is recognized as one of the most multicultural and cosmopolitan cities in Japan.

Japan is a major global producer of motor vehicles, steel, and high technology manufactured goods, especially consumer electronics. It is a global leader in robotics technology. Tokyo is a key global financial center, hosting some of the world’s largest investment banks and insurance companies. The amount of land in Japan suitable for agriculture is insufficient to produce enough food for Japan’s large population. As a result,

Japan imports most of its food from other countries, especially fruits, vegetables, wheat, Soybeans, dairy products and seafood.

Weather Patterns in Osaka

In Osaka, the summers are hot and cloudy. The hot season lasts from June 25 to September 19, with an average daily high temperature above 27 degrees centigrade. The hottest month of the year in Osaka is August, with temperatures reaching 32 degrees centigrade. December to February are the coldest months in Osaka, with average temperatures of 5 degrees centigrade.

Punctuality in Japan

Punctuality is deeply ingrained in Japanese culture, reflecting a strong emphasis on time management, discipline, and respect for schedules.

In business settings, being on time is crucial for building trust and demonstrating professionalism. Failing to keep time can be seen as disrespectful and can negatively impact one’s reputation. Japanese trains are renowned for their exceptional punctuality, with average delays often measured in seconds, reflecting a deep-rooted cultural emphasis on time management and efficiency. While the expectations for punctuality are not as strict in casual settings as in professional ones, it’s still generally considered important to be on time for appointments and gatherings.

Cultural Norms to Observe While Visiting Japan.

Business meetings

During meetings, participants are normally served refreshments. Refusing to accept the offerings is seen as rude. You don’t have to consume the snack or beverage, you can simply leave them aside.

Speaking

Avoid speaking loudly in public spaces to show respect for other peoples’ privacy. Whether on a train, in a shopping mall, or at a park, be mindful of your volume and show consideration for others. How to handle cash

In Japanese culture, money is not exchanged directly between individuals. When buying an item or service, place your payment, be it cash or credit, on the small tray provided. If you are owed any change, it will also be placed on this tray for you to collect.

Queueing

Orderly queuing is deeply ingrained in Japanese culture. Maintaining proper queue etiquette is crucial, whether waiting for a bus, lining up for the restroom, or anticipating your turn at a restaurant or store. The Japanese believe in a first-come, first-served approach, and skipping the line is considered highly inappropriate.

Elevator etiquette

The first person to enter should hold the door open for other passengers and allow them to exit before stepping out themselves, regardless of gender. If you happen to be the first person entering the elevator, remember that it’s your responsibility, according to Japanese culture, to press the button to open the door for others. If the first person departs from the elevator, the individual nearest to the control panel should assume the role of the new ‘elevator captain,’ holding the open button until the former captain has stepped out.

Osaka is a major financial center of Japan, and it is recognized as one of the most multicultural and cosmopolitan cities in Japan.

Kenyan Designers Eye Japanese Market as Expo 2025 Osaka Approaches

Kenya’s fashion industry is making remarkable strides on the global stage, with increasing recognition in key international markets. A recent engagement between Kenyan designers and Japanese buyers signified a major step toward positioning locally made fashion for global success. As Kenya prepares for Expo 2025 Osaka, efforts to showcase the country’s creative sector are intensifying, offering designers valuable exposure and market access opportunities.

In a session facilitated by the Kenya Export Promotion and Branding Agency (KEPROBA), 18 Kenyan designers had the opportunity to interact with Japanese buyers, Tomo Tsukahara Dodo and Naofumi Nemo Shirakawa.

This engagement provided an insightful look into the Japanese fashion industry, a market known for its appreciation of quality, craftsmanship, and cultural authenticity. The exchange allowed Kenyan designers to gain a deeper understanding of the expectations of Japanese consumers, particularly regarding fabric quality, finishing, pricing structures, and branding strategies. Discussions revolved around the importance of attention to detail, meeting international fashion standards, and the need for consistency in production to successfully penetrate the Japanese market.

One of the key takeaways from the discussions was the recognition of Kenya’s strong potential in producing unique,

handcrafted designs that align with Japan’s high regard for artisanal craftsmanship. Buyers expressed a keen interest in designs that tell a story—those infused with cultural elements, intricate beadwork, and sustainable production methods. Japan’s market is increasingly shifting toward ecoconscious fashion, and Kenyan designers stand a good chance of appealing to this growing consumer segment by integrating sustainability into their production processes. The use of locally sourced natural fibers, ethical production methods, and fair-trade practices were highlighted as critical factors that could enhance the competitiveness of Kenyan fashion brands in Japan.

While the engagement shed light on the immense potential for Kenyan fashion in Japan, it also highlighted some of the challenges designers need to address to fully tap into this market. Pricing emerged as a key consideration, with the buyers pointing out that while handmade fashion is valued in Japan, price sensitivity remains a factor that cannot be overlooked. This calls for a balance between maintaining high-quality craftsmanship and ensuring competitive pricing to attract Japanese consumers. Logistics and export processes were also discussed, with designers encouraged to familiarize themselves with Japan’s import regulations, shipping requirements, and certification standards to ease the process of getting their products into the market.

With Expo 2025 Osaka fast approaching, Kenya is keen on leveraging this global platform to strengthen its creative economy and promote locally made fashion. The Expo will present an opportunity to showcase Kenya’s identity through fashion under the concept Kenya Wears Its Identity, where designers will exhibit collections that blend heritage with contemporary influences. Plans are underway to ensure a strong representation of Kenya’s fashion industry, with a focus on not just the aesthetics but also the sustainability and craftsmanship that define Made in Kenya products.

KEPROBA continues to play a central role in ensuring that Kenyan designers are well-positioned to take advantage of this opportunity. Through targeted market linkages, training on export readiness, and facilitating interactions with international buyers, the agency is equipping designers with the tools they need to thrive in global markets. This recent engagement with Japanese buyers is just one of many initiatives aimed at expanding Kenya’s fashion footprint beyond the region. More efforts are being made to explore potential partnerships with Japanese retailers, fashion platforms, and e-commerce sites that could serve as entry points for Kenyan brands looking to establish a presence in the Asian market.

As Kenya builds momentum toward Expo 2025 Osaka, there is renewed optimism about the future of Kenyan fashion in global markets. The success of this recent engagement has reinforced the importance of continuous learning, adaptation, and collaboration in navigating

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international trade. For Kenyan designers, the journey to international recognition requires commitment to refining their craft, staying informed about market trends, and being open to strategic collaborations that enhance their visibility. The insights gained from this engagement will go a long way in shaping the approach to market expansion, ensuring that Kenya’s fashion industry is not only represented at Expo 2025 but is also well-positioned for long-term growth in Japan and beyond.

Through strategic initiatives such as this, KEPROBA remains committed to amplifying Kenya’s creative economy and ensuring that local designers have the platform, knowledge, and market access they need to thrive on the world stage. The future of Made in Kenya fashion looks promising, with each new engagement bringing the country closer to securing its place in the global fashion industry.

: Kenya Export Promotion and Branding Agency

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