US-imposed tariffs are significantly altering Kenya’s business environment, with service sectors bearing the brunt of the new trade restrictions.
The Central Bank of Kenya’s March 2026 CEO Survey Report indicates that tourism, hotel, and restaurant establishments are experiencing the most severe impact, with 24 per cent of respondents naming this sector as the most adversely affected.
This situation highlights the particular vulnerability of international travel and hospitality establishments to changes in global trade policies and related cost structures.
The financial industry is also experiencing considerable challenges, as 16 per cent of business leaders report substantial disturbances. Professional services are similarly affected at 14 per cent, reflecting how credit and capital markets are responding to evolving trade conditions.
Notably, sectors typically linked with physical commoditiesmanufacturing and agricultureexhibit comparable vulnerability, each mentioned by 10 per cent of survey participants. This finding suggests that while these industries form the core of trade activities, the secondary effects on service sectors are currently more pronounced.
Technology and retail businesses demonstrate somewhat greater resistance but remain susceptible to these market changes. The ICT and Telecommunications sector, along with the Wholesale and Retail Trade sector, were both identified as significantly impacted by 8 per cent of respondents.
Real estate appears most shielded from these particular trade tensions, with only 6 per cent of CEOs considering it the most adversely affected industry.