•Despite ongoing trade tensions with neighboring Uganda, Kenya's exports have experienced significant growth across multiple key markets.
•Conversely, exports to the USA dropped by Sh16.9 billion, UK by Sh4.8 billion, Belgium (Sh1.08 billion), and Germany (Sh0.22 billion).
Image: GEORGE MUGO
Kenya defied a 4.9 per cent increase in imports to narrowed its trade deficit by Sh13.59 billion from Sh1.618 trillion in 2022 to Sh1.604 trillion in 2023.
In the period the imports rose from Sh2.5 trillion in 2022 to Sh2.6 trillion in 2023.
Latest industry data by Kenya Export Promotion and Branding Agency (KEPROBA) shows that despite the overall reduction in balance of trade, Kenya faced widening trade deficits with several countries, including the Netherlands, USA, and UAE.
However, there were positive developments with countries like Uganda, Pakistan, and Tanzania, where Kenya managed to narrow the trade deficit and achieve surplus in some instances.
In the period Key export markets such as Uganda, Pakistan, and the Netherlands experienced significant growth, while exports to major destinations like the USA, UK, Belgium, and Germany saw declines.
Export commodities also shifted notably, with tea, horticulture, and cement showing substantial growth, whereas animal and vegetable fats, mineral ores, and textiles declined.
“Kenya’s economy is expected to remain resilient in 2024, supported by robust efforts to address trade imbalances, diversify export markets and products, and enhance competitiveness,” the agency said in its Kenya Export Performance in 2022 and 2023 update.
The leading ten export markets for Kenya in 2023 were Uganda, Pakistan, the Netherlands, Tanzania, USA, UAE, UK, Rwanda, South Sudan, and Egypt, with the majority being African nations.
In the period Kenyan exports grew by over Sh2 billion into the country’s top 25 markets.
Despite ongoing trade tensions with neighboring Uganda, Kenya's exports have experienced significant growth across multiple key markets.
Exports to Uganda surged by Sh28.5 billion, while other notable increases include Pakistan (Sh14.8 billion), Netherlands (Sh6.37 billion), Tanzania (Sh11.1 billion), UK (Sh10.0 billion), UAE (Sh11.9 billion), South Sudan (Sh8.32 billion) and Egypt (Sh4.5 billion).
Other are DRC (Sh8.7 billion), Somalia (Sh6.31 billion), Saudi Arabia (Sh5.7 billion), France (Sh5.5 billion), Ethiopia (Sh3.2 billion), India (Sh2.5 billion), Zambia (Sh2.31 billion), Japan (Sh2.8 billion), and Kazakhstan (Sh2.89 billion).
Conversely, exports to the USA dropped by Sh16.9 billion, UK by Sh4.8 billion, Belgium (Sh1.08 billion), and Germany (Sh0.22 billion).
The significant decline in the USA and Belgium was primarily due to reduced coffee exports to Belgium, which fell by Sh2.8 billion, and a drop in exports to the USA, driven by declines in mineral ores and slag (Sh8.2 billion), edible fruits and nuts (Sh5.0 billion), and textile and apparel accessories (Sh3.6 billion).