Kenya has found itself in the middle of a growing trade dispute between Washington and Beijing after the United States accused more than 40 countries of potentially helping Chinese companies get around US tariffs.
In a report released on August 13, 2026, the White House identified Kenya as one of the countries that could be used as a route for Chinese goods heading to the American market. The report refers to what it calls a “Shadow Transshipment Network.”
The allegation is based on concerns that Chinese goods could be shipped to third countries, where they may be repackaged, relabelled or undergo limited processing before being exported to the US as products originating elsewhere.
That practice, known as transshipment, can be used to avoid tariffs when the true country of origin is concealed.
Why Kenya has attracted US attention
According to the White House report, Kenya is classified in Tier 3 of the alleged network and is described as a relatively small but potentially attractive target for China-linked trade rerouting.
Kenya’s position is particularly interesting because of its role as a regional trading and logistics hub.
The country has the Port of Mombasa, bonded warehouses, export processing zones and other trade infrastructure that can facilitate the movement of goods across East Africa.
The US concern, however, should not be interpreted as an accusation that Kenya as a country—or Kenyan businesses generally—are deliberately helping China evade American tariffs.
Rather, Washington is warning that Kenya’s infrastructure and trading arrangements could potentially be exploited for that purpose.
The bigger problem for Kenyan exporters
The issue could become serious if American authorities decide that goods passing through Kenya are being deliberately misrepresented.
Washington has been tightening its customs enforcement as the Trump administration attempts to prevent companies from circumventing tariffs. The White House says US Customs and Border Protection is strengthening checks on issues including the origin of goods, misclassification and undervaluation.
For Kenya, that could mean greater scrutiny of exports destined for the United States.
Businesses may face more questions about where their products were manufactured, where raw materials came from and what processing took place before the goods were exported.
Why the apparel industry is watching closely
The stakes are particularly high for Kenya’s garment industry.
Kenyan manufacturers have spent years building a presence in the US market, with the apparel sector employing tens of thousands of people.
The end of AGOA’s previous preferential arrangement has already created uncertainty for Kenyan exporters. The sector has been particularly exposed because it competes directly with manufacturers in Asian countries where production costs can be significantly lower.
Any additional restrictions or suspicion around Kenyan exports could therefore make it even harder for local manufacturers to remain competitive.
Washington says billions are being lost
The White House estimates that tariff evasion through illegal transshipment costs the United States between $19 billion and $26 billion in lost tariff revenue each year.
The administration is now using additional customs tools and technology to identify suspicious supply chains.
One of the systems being developed is “Detective Border,” an AI-powered tool designed to analyse trade and shipping information to help US authorities determine where goods actually originate.
The US says the broader effort is aimed at preventing companies from simply changing the apparent origin of products to avoid tariffs.
China pushes back
China has rejected Washington’s broader approach to trade restrictions, arguing that using government power to target Chinese businesses will not solve the underlying trade tensions.
The dispute comes at a sensitive time, with Washington and Beijing still trying to manage their wider economic relationship.
The US has increasingly made anti-transshipment provisions part of its trade policy, including in agreements negotiated with other countries.
What Kenya needs to watch
For Kenya, the immediate issue is not simply being named in an American report.
The bigger concern is what happens next.
If US customs officials begin paying closer attention to Kenyan exports, exporters may face more inspections and stricter demands for proof of origin.
Kenyan authorities could also face pressure to strengthen oversight of goods moving through ports, bonded warehouses, export processing zones and other logistics facilities.
For legitimate Kenyan manufacturers, stronger controls could ultimately be beneficial if they demonstrate that products labelled “Made in Kenya” genuinely originate in Kenya.
But if Washington concludes that Kenya is being systematically used to circumvent Chinese tariffs, the consequences could be much more serious.
For now, the White House report is an allegation and warning—not a finding that Kenyan exporters as a whole are involved in tariff evasion.
The challenge for Nairobi will be to protect Kenya’s reputation as a reliable trading partner while ensuring that the country’s growing logistics and manufacturing infrastructure is not exploited as a backdoor into the US market.
