kenya exports

Kenya experienced an unprecedented 21% surge in exports, soaring to a record high of Sh325 billion in the first nine months of the year 2023, with the surge reflecting Kenya’s growing prominence in global trade. 

Uganda emerged as the kenya leading exports market, accounting for 35% of Kenya’s total exports at Sh98 billion, with a remarkable 45% surge in exports to Uganda between January and October 2023.

The notable expansion was closely linked to the increasing demand in Uganda for cement clinkers, a vital element in cement manufacturing essential for the growth of Uganda’s oil and gas sector, as well as various initiatives in infrastructure development.

In 2023, the demand for cement clinkers in Uganda reached a remarkable nine million tonnes, with projections indicating an annual increase of 15%. This substantial demand far exceeded Uganda’s local production capacity of one million tonnes, with Kenya acting as a reliable provider for the product.

The success in the cement industry trade was complemented by positive diplomatic relations and strategic infrastructure improvements. Robust international ties and enhanced transportation networks facilitated the seamless flow of cement clinkers and other goods between the two nations, contributing significantly to the export boom.

The Government Policy That Is Driving Demand for T-Bills in 2024 Up: A Closer Look

Kenya also celebrated a notable achievement with an 18% growth in exports to Tanzania, signifying a significant milestone in the enduring trade relationship between the two nations. 

Over the past 26 years, Kenya witnessed a consistent annual increase of 7.21% in exports to Tanzania, culminating in a substantial surge from $67.8 million in 1995 to Sh57.37 billion in 2023. This growth was fueled by diversified sectors and industries, showcasing the depth and resilience of economic ties that have evolved over the years.

A pivotal driver of this export success was the strategic role played by the re-exports of kerosene-type jet fuel. Kenya adeptly met Tanzania’s demand in this specific industry, highlighting its crucial contribution to the overall export growth. 

In 2023, Tanzania had a tax rate of zero for kerosene-type jet fuel, creating a favorable environment for trade in this strategic commodity. The global economy’s growth and increased airplane traffic, expected to strengthen the aviation industry, led to a significant demand for jet kerosene. This heightened demand, coupled with Tanzania’s tax incentives, further solidified the importance of this sector in driving bilateral trade.

READ ALSO:

Mdundo and Safaricom Join Forces for Affordable DJ Mixes in Kenya

Additionally, Tanzania’s robust infrastructure was a key factor. The country boasts 22 warehouses with a collective storage capacity of approximately 1.31 billion liters, encompassing four types of petroleum products, including jet fuel. This extensive storage infrastructure enhanced the efficiency and reliability of the supply chain, facilitating the seamless flow of kerosene-type jet fuel from Kenya to Tanzania.

Kenya furthermore recorded a remarkable 51% leap in exports to the Democratic Republic of Congo (DRC).Accompanying the export surge are increased orders for specific products, such as wheat flour, food preparations, and preparations of organic-surface active agents.

The DRC faced a humanitarian crisis in 2023, marked by violence, displacement, and a severe hunger crisis. Between July and December 2023, approximately 25.4 million people in the DRC were acutely food insecure, with an estimated 900,000 children severely malnourished. 

The ongoing conflict led the World Food Programme to designate the DRC as the “largest food crisis in the world.” Kenyan exports therefore became crucial in addressing acute food insecurity and malnutrition affecting millions.

Kenya also experienced a remarkable 51% surge in exports to Somalia, solidifying the economic ties between the two nations. The surge in the first half of 2023 reached a record Sh11.4 billion, with the resumption of miraa exports playing a pivotal role, nearly doubling export figures during this period.

The positive international relations on trade partnerships further created a conducive environment for trade, propelling Somalia to become Kenya’s fifth-largest destination for goods in Africa, surpassing the Democratic Republic of Congo and Ethiopia.

Kenya further achieved a substantial 27.55% growth in exports to South Sudan, showcasing resilience amidst persistent civil unrest. Notably, in 2022, Kenya exported $170.79 million to South Sudan. In 2021, kenya main export products were other edible preparations, beer, and sorghum. 

Furthermore, the export revenue to South Sudan increased by 64.4% in 2023, with October 2023 witnessing a 44% surge in Kenya’s tea export volume compared to the previous year. Lubricants and food preparations were also a major export to South Sudan.

Fitch Solutions anticipates a 5.5% growth in Kenya’s exports for 2024. However, the goods trade deficit is projected to expand to 10.8% of GDP, the highest since 2018. 

Leave a Reply

Your email address will not be published. Required fields are marked *