Source: The Kenyan Wall Street
Kenya’s export to neighbouring countries grew in the third quarter of 2023, pushing the country’s total exports to KSh269.4 billion, a growth of 19.6 percent compared to the same quarter of 2022.
- According to Kenya National Bureau of Statistics’s Balance of Payments Report, the largest share was export revenues from the African continent valued at KSh119.7 billion, constituting 44.4 per cent of Kenya’s overall export earnings.
- There was an increase in earnings from exports to Uganda (27.7 per cent), Tanzania (32.1 per cent), South Sudan (64.4 per cent), and the Democratic Republic of Congo (78.6 per cent).
- During the period, expenditure on imports declined by 1.6 per cent compared to the same quarter of 2022.
The growth in exports was driven by increased domestic exports of cement clinkers to Uganda; lubricants and food preparations to South Sudan; wheat flour, food preparations, and preparations of organic-surface active agents to Democratic Republic of Congo; and re-exports of kerosene type jet fuel to Tanzania.
The value of exports to Asia increased by 30.3 per cent from KSh53.9 billion in the third quarter of 2022 to KSh70.2 billion in a similar quarter of 2023, largely on account of increase in domestic exports of tea to Pakistan, goat meat to United Arab Emirates and re-exports of kerosene type jet fuel to Saudi Arabia.
- Exports to China and Singapore declined by 26.2 per cent and 84.2 per cent, respectively.
- Revenue from exports to the European Union (EU) increased by 21.9 per cent primarily boosted by increase in domestic exports of cut-flowers and avocados to the Netherlands.
- Earnings from exports to America dropped by 26.8 per cent, mainly on account of decreased domestic exports of titanium ores and concentrates; and macadamia nuts to the United States of America.
The highest proportion of total import expenditure in the quarter under review was from the Asian region at 67.1 per cent. The import bill to the Middle East increased marginally despite a downward surge in the value of imports from Oman, which was countered by an increase in the value of imports from both United Arab Emirates and Saudi Arabia.
On the hand, import expenditure to the Far East Asia, declined by 6.4 per cent in the quarter, largely driven by decline in imports from South Korea (74.9 per cent), Taiwan (75.7 per cent) and Malaysia (18.5 per cent).
- Total imports from the European Union (EU) dropped to KSh52.4 billion during the third quarter of 2023 from KSh62.3 billion in the same quarter of 2022, predominantly occasioned by decrease in imports of base oils from the Netherlands.
- The import bill to Russian Federation rose by KSh6.7 billion in the review period, largely driven by increased importation of wheat from this source.
- Import expenditure to the African continent reduced from KSh76.9 billion in the third quarter of 2022 to KSh73.8 billion, translating to a decrease of 3.9 per cent, partly because of a decrease in imports of maize from Tanzania, and sugar from Swaziland.
Conversely, there was an increase in imports from the American continent, mainly driven by an increase in imports of wheat, soya-bean oils, and its fractions from the United States of America and sugar from Brazil.
THE AUTHOR: Fred Obura