Kenyans Brace for Higher Prices as CS Kinyanjui Defends 35% Import Taxes

Kenya’s Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, has publicly defended the government’s decision to impose higher taxes on imported goods, saying the move is necessary to protect local industries and stimulate economic growth.

Speaking at a press briefing in Nairobi on Thursday, CS Kinyanjui explained that the increased taxation regime is aimed at boosting the competitiveness of locally produced goods, which have struggled to compete with cheaper imports.

He stressed that strengthening domestic manufacturing is central to Kenya’s broader industrialisation strategy.

The taxes are not punitive but strategic,” Kinyanjui said. “They are meant to level the playing field so that Kenyan manufacturers can grow, create jobs and contribute more meaningfully to the economy.”

The CS acknowledged concerns from consumers and traders about rising costs but argued that long-term benefits outweigh short-term price adjustments.

Under recent changes to the East African Community Common External Tariff, several categories of imported goods now attract higher duties in some cases up to 35 percent a move officials say will encourage import substitution and drive investment into local value chains.

Kinyanjui also noted that the government is engaging regional partners to harmonise trade policies, minimise distortions and safeguard Kenya’s export markets. He said improving local competitiveness would position Kenya to better exploit opportunities under the African Continental Free Trade Area (AfCFTA).

Critics, including some business groups and consumer advocates, warn that higher import levies could push up retail prices and inflation, particularly for goods that are not produced locally.

However, the CS reiterated that targeted tax incentives and support programmes for manufacturers are being rolled out to mitigate adverse impacts.

As we grow Kenyan industries, we must be patient and strategic,” he concluded.