𝐔.𝐒. 𝐑𝐞𝐩𝐨𝐫𝐭 𝐅𝐥𝐚𝐠𝐬 𝐊𝐞𝐧𝐲𝐚 𝐚𝐬 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐢𝐭 𝐏𝐨𝐢𝐧𝐭 𝐟𝐨𝐫 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐆𝐨𝐨𝐝𝐬

Kenya has been named among countries that the United States says could be vulnerable to the rerouting of Chinese goods through third countries to avoid American tariffs.

The allegation is contained in a new White House report titled “The Great Transshipment Scam,” released on Thursday, August 13, 2026.

The report examines what the U.S. government describes as a global network in which goods from China may be moved through other countries before being shipped to the United States with their true origin allegedly concealed.

Kenya is placed in Tier Three of the report’s so-called “Shadow Transshipment Network”, which it describes as comprising “Small, Opportunistic Chinese Targets.”

The report describes Kenya as a potential “African Peripheral Hub”, saying its port infrastructure, bonded warehouses, free-zone arrangements, relatively low labour costs and assembly capacity could make it attractive for China-linked trade.

“Tier 3 consists of the Small, Opportunistic Chinese Targets,” the report states.

It adds that China-linked exporters may be drawn to such countries because they offer specialised advantages, including lower labour costs and access to markets with preferential trade arrangements.

The report does not establish that Kenya is currently involved in illegal transshipment. Instead, it identifies the country as a potential weak point that could be exploited by exporters seeking to avoid U.S. tariffs.

How the alleged scheme works

Transshipment generally involves goods being moved through an intermediate country before reaching their final destination.

The concern raised by Washington is that some Chinese products could be relabeled, repackaged or undergo limited processing in another country and then be exported to the United States as products originating from that country.

The United States says such practices could allow importers to avoid tariffs imposed on Chinese goods.The report warns that countries found to be facilitating tariff evasion could face measures including interdiction, additional tariffs, sanctions and possible loss of access to the U.S. market.

It describes the alleged practice as “smuggling disguised as trade” and “fraud cloaked in paperwork.”

Kenya’s inclusion is significant because the country is an eligible beneficiary of the African Growth and Opportunity Act (AGOA).

The U.S. Trade Representative confirms that Kenya is eligible for AGOA benefits in 2026, including special benefits for textiles and apparel.

U.S. steps up monitoring

The White House report says the U.S. is developing an artificial-intelligence system known as “Detective Border” to help identify suspicious trade patterns.Contrary to some descriptions of the initiative, Detective Border is not a newly established U.S. agency.

It is an AI-powered enforcement system intended to analyse trade information and help authorities identify possible tariff-evasion schemes.

The system is expected to use trade data and other information to identify inconsistencies in supply chains and assess whether exporters have the capacity to produce the goods they claim to have originated.

The United States estimates that tens of billions of dollars in goods may be moving through transshipment networks each year, costing Washington billions of dollars in tariff revenue.

Morocco is the other African country shown on the report’s functional map.

Possible impact on Kenyan exporters

The report’s concerns come at a time when Kenya is seeking to strengthen its access to the American market.

Kenya’s exports to the United States were worth about KSh72.96 billion in 2024, according to data reported from the Kenya National Bureau of Statistics.

The textile and apparel industry remains particularly dependent on the U.S. market. Kenya’s textile and apparel exports under AGOA reached KSh66.9 billion in 2025, while more than 82,000 people were employed in the sector, according to the Kenya Export Promotion and Branding Agency.

Kenya’s inclusion in the U.S. report does not, by itself, mean that legitimate Kenyan exporters are accused of wrongdoing.

However, increased American scrutiny could mean stricter checks on the origin of goods and supply chains involving Kenyan companies.

For manufacturers, exporters and logistics companies, the main concern is that suspected cases of tariff evasion could lead to greater scrutiny of shipments and potentially affect legitimate businesses if supply-chain records cannot clearly demonstrate where products were made.

The report therefore puts renewed focus on Kenya’s responsibility to ensure that goods exported through its ports, warehouses and special economic zones comply with international trade rules.

For now, the U.S. assessment is a warning of potential exposure rather than a finding that Kenya has been proven to be part of an illegal Chinese transshipment operation.

Kenya’s exporters will therefore face the challenge of maintaining transparent records and demonstrating the true origin of their products as Washington intensifies efforts to detect tariff evasion.