Nairobi Securities Exchange and Kenyan Shilling Rebound After Trump Suspends Export Tariff

In a surprising turn of events, the Nairobi Securities Exchange (NSE) and the Kenyan shilling rebounded sharply on Thursday, April 10, following a 90-day suspension of global export tariffs by US President Donald Trump. The move came after global financial markets experienced significant turmoil over the previously imposed levies.

Trump’s U-Turn on Tariffs

The rebound followed Trump’s suspension of a 10% reciprocal tariff that had been levied on Kenyan exports, which had sent the local markets into a tailspin earlier in the week. From Monday, April 7, to Wednesday, April 9, investors at the NSE had lost an estimated KSh 124.4 billion in market value due to the tariff.

However, Thursday’s announcement triggered a swift recovery, with market capitalisation surging by KSh 34 billion, clawing back over a third of the earlier losses.

Major Market Gains at the NSE

All key indices at the NSE posted significant gains:

• NSE 20 Index rose by 19.51 points to close at 2138.65.
• NSE All-Share Index (NASI) gained 2.16 points to settle at 125.76.
• NSE 25 climbed by 73.33 points to 3387.48.
• NSE 10 advanced 26.19 points to stand at 1277.04.

Top gainers on the day included:

• Sanlam (+9.27%)
• Express (+8.57%)
• I&M Holdings (+7.82%)
• Kakuzi (+7.06%)
• Kenya Commercial Bank (+6.37%)

Kenyan Shilling Strengthens

The shilling also recorded gains in the foreign exchange market as the demand for the US dollar eased. The local currency appreciated from a closing average of 129.67 on Wednesday to trade at 129.42 per unit by Thursday evening.

Expert Insights on Tariff Suspension

Geopolitical economist Aly-Khan Satchu said Trump’s retreat was driven by the severe market disruption caused by the tariffs. “The degree of market turmoil caused by the tariffs was simply unprecedented. I believe Trump concluded it was more prudent to maintain the pressure on China while giving markets, especially the bond market, some relief,” he said.

Satchu also pointed out that the 10% tariff on Kenyan goods had given the country a temporary edge over its textile competitors. “Now that advantage is eroded, but I don’t believe investment decisions will be made based on a constantly shifting tariff landscape,” he added.

Trump’s Global Trade Strategy

President Trump defended the tariffs as part of a broader strategy to reorganise the global trade system by lowering barriers against US exports and encouraging manufacturers to shift production back to the United States.

However, his aggressive approach particularly toward China — with tariffs raised up to 145% — led to a sharp downturn in global markets, forcing the administration to temporarily ease pressure on countries like Kenya.

As markets adjust to the suspension, stakeholders remain cautiously optimistic, hoping for long-term stability in trade relations and continued investor confidence in Kenya’s economy.

In other news:U.S. Flags Rampant Bribery Demands from Kenyan Officials, Says Corruption Still a Major Barrier for Investors

Nairobi Securities Exchange and Kenyan Shilling Rebound After Trump Suspends Export Tariff