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Energy industries

CEOs in Kenya Worry About Rising Input Costs and Global Trade Tariffs

Strategic Insights

— 2 min read

CEOs of Kenyan corporations are anticipating a negative impact on their businesses due to the recent US trade tariff increases and policy changes, which have caused a surge in energy prices and raw material costs. A survey conducted by the Central Bank of Kenya found that 64% of CEOs are concerned about the potential negative effects of higher import costs for inputs and finished goods. The recent increase in energy prices and global tariffs has resulted in a 0.15% year-on-year producer inflation rate, with the Producer Price Index (PPI) standing at 138.16 in June 2025, up from 137.95 in the corresponding period last year. This increase in PPI has led to higher consumer prices, as manufacturers seek to recoup the additional costs incurred in production.

Key Takeaways:

  • 64% of CEOs in Kenya anticipate a negative impact of US trade tariff increases on their businesses, citing higher import costs for inputs and finished goods.
  • The Producer Price Index (PPI) in Kenya stood at 138.16 in June 2025, up from 137.95 in the corresponding period last year, resulting in a 0.15% year-on-year producer inflation rate.
  • The recent increase in energy prices has led to a 1.26% increase in electricity, gas, and steam supply costs compared to the same period last year.
  • The Energy and Petroleum Regulatory Authority (Epra) announced a marginal Sh1 drop in the costs of a litre of petrol and diesel, but prices remain high, with petrol retailing at Sh185.31 and diesel at Sh171.58 in Nairobi.
  • The CEOs also expressed concerns about reduced export earnings to the US after the expiry of the African Growth and Opportunity Act (Agoa) on September 30 this year.
  • Over 50% of Kenyan exports to the US are comprised of clothing, macadamia, coffee, titanium ores and concentrates, and black tea, which will be affected by the loss of duty-free access under Agoa.

Statistics:

  • 64% of CEOs in Kenya anticipate a negative impact of US trade tariff increases on their businesses.
  • PPI in Kenya stood at 138.16 in June 2025, up from 137.95 in the corresponding period last year.
  • Year-on-year producer inflation rate: 0.15%
  • Electricity, gas, and steam supply costs increased by 1.26% compared to the same period last year.
  • Petrol price in Nairobi: Sh185.31 per litre (September 2025).
  • Diesel price in Nairobi: Sh171.58 per litre (September 2025).
  • Kerosene price in Nairobi: Sh155.58 per litre (September 2025).

Sources:

  • Central Bank of Kenya (CBK) survey
  • Kenya National Bureau of Statistics (KNBS) data on Producer Price Index (PPI)
  • Energy and Petroleum Regulatory Authority (Epra) announcement on fuel prices
  • African Growth and Opportunity Act (Agoa) treaty

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