By 
SMEs Urged to Go Global as Tariff Wars Escalate
Less than three months into his second term, US President Donald Trump is following through on his campaign pledge to use trade tariffs as bargaining chips to advance America’s diplomatic, economic, and national security interests.
His first targets included China, Canada, Mexico, and Colombia, with threats of further action aimed at the European Union and the United Kingdom.
Economists have long cautioned that tariffs—taxes imposed by importing countries on goods and services—raise the cost of doing business and fuel inflation, as higher prices are passed on to consumers.
The current wave of tariffs has reignited debate about the value and role of international trade in local economies. This conversation now includes many developing countries that have expanded trade relations with the US in recent decades.
Data from the Kenya National Bureau of Statistics (KNBS) shows that Kenya’s exports to the US fell from Sh79.9 billion in 2022 to Sh64.2 billion in 2023. Meanwhile, imports from the US rose from Sh93.3 billion to Sh112.7 billion during the same period.
https://africabusinessnews.co.ke/absa-doubles-down-on-women-owned-suppliers-wins-ifc-award/
Building Trade Networks is Now a Strategic Priority
As global businesses navigate post-COVID recovery, geopolitical conflicts, and supply chain disruptions, the need for strong international trade networks—especially for SMEs—has never been more urgent.
In Kenya, institutions such as the Kenya National Chamber of Commerce and Industry, KenInvest, and the Kenya Association of Manufacturers are helping firms build trade relationships with international partners. These organizations have also advanced trade diplomacy and supported SME partnerships across Africa.
SMEs Urged to Go Global as Tariff Wars Escalate
Financial institutions are stepping in as well. For example, Absa Business Club offers SMEs advisory services, market access support, and financial tools. Members enjoy benefits like free foreign currency accounts, business overdrafts, and access to Absa’s forex team.
They also participate in quarterly networking events, training workshops, and business trips. Recently, Absa led delegations to Estonia, Finland, and the United States, where Kenyan entrepreneurs explored trade opportunities and formed new connections.
In 2024, Absa https://www.absabank.co.ke/personal/ hosted over 1,000 entrepreneurs at a national SME empowerment forum. Another group visited Cape Town to study renewable energy, agriculture, and manufacturing innovations.
These business missions complement the work of lobby groups by helping Kenyan firms build practical, non-financial connections that open new doors in global markets.
https://africabusinessnews.co.ke/absa-powers-300k-farmers-with-kes-500m-agribiz-boost/
Time to Expand Beyond Traditional Trade Partners
Kenya must now look beyond its traditional trade partners. New alliances with innovative economies such as Estonia, Finland, Sweden, and the US could help the country diversify its exports. These nations are home to high-growth start-ups and are leaders in technology and innovation.
Business clubs in Kenya can lead the charge by building stronger linkages with these emerging markets. This will not only boost the country’s export footprint but also open new pathways for SME growth in an increasingly competitive global economy.“
By Erastus Muthura
Head of SME Banking, Absa Bank Kenya PLC
Comments