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Economy

Kenya's exports to African nations shrink for 3rd year

December 30, 2016


Abstract : African countries imported fewer goods from Kenya this year, leading to reduced earnings for East Africa's biggest economy.

NAIROBI, Dec. 29 (Xinhua) -- African countries imported fewer goods from Kenya this year, leading to reduced earnings for East Africa's biggest economy.

The decline, both in the East Africa Community and Comesa (Common Market for Eastern and Southern Africa) trading blocs, is the third in a row since 2014, official economic data from the Central Bank of Kenya (CBK) showed on Thursday.

Kenya exports its products to Uganda, Tanzania, Egypt, Sudan, South Sudan, Somalia and Rwanda, among others.

Total exports to the African countries, according to the CBK data, stood at 2.3 billion U.S. dollars, down from 2.5 billion dollars in a similar period (from January to October) in 2015 and 2.7 billion dollars in 2014.

Uganda, top importer of Kenya's products, recorded the biggest decline in the period under review.

The CBK data showed exports to the nation fell to 605 million dollars during the period from 707 million dollars in 2015, a decline of 10.4 percent.

Kenya exports to Uganda include meat and milk, manufactured goods, common salt, beer, fuel through Mombasa port and construction materials like cement and steel bars.

Similarly, exports to Sudan fell from 59 million dollars in 2015 to 54 million dollars in 2016, a drop of 0.9 percent.

South Sudan imports from Kenya recorded a fall of 2.8 percent from 179 million dollars in 2015 to 161 million dollars in 2016 while exports to DR Congo and Rwanda fell by 3.5 percent and 2.9 percent from 213 million dollars to 203 million dollars and 180 million dollars to 167 million dollars respectively.

Only Tanzania, Somalia and Egypt recorded marginal increases in imports from Kenya. Tanzania's rose from 346 million dollars to 350 million dollars, Somalia from 148 million dollars to 167 million dollars and Egypt from 199 million dollars to 214 million dollars.

Analysts attributed the decline to increased imports of cheaper goods, especially from Asia, to the African countries.

"This, therefore, locks out goods from Kenya, which now has to rely on mainly agricultural exports like coffee and tea as exports," said Henry Wandera, an economics lecturer in Nairobi.

Kenya's imports are mainly textiles, industrial machinery, vehicles, electronic goods, pharmaceuticals, motorcycles and semi-processed goods.

Exports outside Africa too did not do well during the period, according to the CBK data, falling to 3.47 billion dollars from 3.48 billion dollars in 2015 and 3.54 billion dollars in 2014.

The Netherlands is the top destination of Kenya's exports outside Africa, absorbing 476 million dollars worth of goods that include cut flowers, coffee and tea during the period. This was a rise of 8.2 percent from a similar period last year.

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Keyword: exports kenya

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