January, 2025
American Chamber of Commerce, Kenya
Facilitating Kenya - U.S. Trade and Investment
Navigating 2025: Building Resilience, Driving Growth, and Strengthening Partnerships
As we step into 2025, we do so against the backdrop of an ever-evolving global and local landscape. Shifting geopolitics, regulatory changes, an unpredictable tax environment, and economic pressures continue to shape the business climate in Kenya. For the private sector, these factors present both challenges and opportunities demanding agility, strategic foresight, and collaboration to navigate successfully.
At AmCham Kenya, we remain committed to advocating for a transparent, predictable, and competitive business environment by fostering meaningful dialogue, shaping policy discourse, and championing reforms that strengthen the U.S.-Kenya commercial partnership. Through strategic engagement with policymakers, industry leaders, and stakeholders, we will continue driving solutions that enhance growth, investment, and innovation.
Here’s to a year of resilience, progress, and shared success.
Maxwell Okello
CEO, AmCham Kenya
Trump’s Second Term: Trade Tensions and Executive Orders
Executive Orders on Immigration, Federal Overhauls, and Global Withdrawals
President Trump has implemented a series of executive orders to fulfill his campaign promises, including declaring a national emergency at the U.S.-Mexico border, reinstating the "Remain in Mexico" policy, suspending refugee admissions, and seeking to end birthright citizenship. He also plans to expedite deportations using the 1798 Alien Enemies Act.
To reduce the size of government, Trump ordered federal employees to return to the office and enacted a hiring freeze. He also eliminated diversity and inclusion programs. On the international stage, Trump withdrew the U.S. from the Paris Climate Agreement and the World Health Organization. President Trump appointed Secretary Marco Rubio as Acting Administrator of USAID to review and potentially reorganize the agency, ensuring alignment with the "America First" agenda and more efficient use of taxpayer funds. Read more
Trade Tensions Rise: Impact of New U.S. Tariffs on Global Market
The Trump administration has imposed tariffs of 25% on steel and 10% on aluminum imports from Canada, Mexico, and the European Union (EU), citing national security concerns. This decision has strained relationships with key allies and prompted retaliatory measures.
Experts warn that these tariffs may disrupt global supply chains, increase costs for American consumers, and undermine the rules-based international trading system. The move could also hinder cooperation with allies in addressing shared concerns about China's trade practices. The situation underscores the importance of businesses staying informed and adaptable in the face of evolving trade policies. Click here to learn more.
Technology
DeepSeek’s AI Disrupts Global Markets, Pressuring Tech Stocks and Industry Leaders
DeepSeek, a Chinese AI startup, has developed the R1 model, a ChatGPT-like AI system that operates at a fraction of the cost of its U.S. counterparts. This advancement has led to significant market reactions, with U.S. tech stocks experiencing notable declines. Nvidia, for instance, saw a nearly 17% drop, equating to a loss of approximately $588.8 billion in market value. The broader tech-heavy Nasdaq index also fell by 3.1%. DeepSeek's ability to create cost-effective AI models using less advanced chips has raised concerns about the competitive edge of American tech companies in the AI sector. Industry leaders are now reassessing their strategies in light of this development. Click here to read more.
Kenya Business Environment
U.S. - Kenya Relations
Secretary of State Marco Rubio spoke with Kenyan President William Ruto to underscore the value of the U.S.-Kenya bilateral relationship and thank him for Kenya’s leadership of the Multinational Security Support (MSS) mission to Haiti.? The Secretary also reiterated the importance of Kenya’s role in promoting regional peace and security in Somalia, Sudan, South Sudan, and the DRC.
Cabinet Changes: New Appointments and Leadership Changes
President Ruto reshuffled his Cabinet, making the following appointments:
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Enhancing Business Resilience: AmCham’s Role in Shaping Business Climate
AmCham actively participated in public consultations for the following bills:
These proposed policies and regulatory frameworks aim to enhance Kenya's digital economy, data protection, fiscal stability, and technological innovation. Our submissions highlight the need for a balanced approach that fosters innovation, safeguards data privacy, streamlines market structures, and ensures a predictable business environment. By advocating for clear, forward-looking regulations, we seek to enhance competitiveness, attract investment, and support long-term economic growth. Click on the links above to read our submissions.
Kenya’s Entertainment and Media Sector Set for Growth
Kenya's entertainment and media (E&M) sector is projected to experience steady growth, with revenues increasing from US$3.8 billion in 2023 to US$4.8 billion by 2028. This growth is driven by the expansion of internet advertising, over-the-top (OTT) services, and mobile gaming, sectors that are particularly appealing to Kenya's youthful, digitally engaged population. The private sector and government's commitment to enhancing digital infrastructure and fostering a supportive environment for creative industries further bolsters the sector's potential. Click here to read full report.
Past Events
AmCham Outlook Forum
The?2025 AmCham Outlook Forum?provided a strategic platform for business leaders to gain expert insights into Kenya’s economic trajectory, key risks, and policy interventions shaping the year ahead. You can access the?World Bank Report, and the?Forum Readout?for a summary of the?key discussions and proposed actions aimed at fostering sustainable outcomes. Additionally, you can view the?Forum Photography?here.
New Year Member Networking Cocktail
Thank you to everyone who joined us for the New Year Members Networking Cocktail! Your active participation made the event a resounding success. It was inspiring to see the vibrant exchange of ideas and opportunities throughout the evening. We look forward to many more moments of connection, collaboration, and growth! Click here to access event photography.
AmCham Patron Circle Members
?The Brand Coach?
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