Kenya exports to EAC shrink by Sh4.3bn

Politics and policy

The growing tendency by local firms to set up industrial plants in the neighbouring states has ensured steady supply of goods that previously had to be imported from Kenya. PHOTO | FILE 

By  NEVILLE OTUKI, notuki@ke.nationmedia.com

In Summary

• Kenyan firms received orders worth Sh71.74 billion from Uganda, Tanzania and Rwanda by September, down from Sh76.09 billion in a similar period last year.
• Officials say the growing tendency by local firms to set up industrial plants in the neighbouring states has ensured steady supply of goods that previously had to be imported from Kenya.

The shipment of Kenyan goods to East African markets shrunk by Sh4.3 billion in the first nine months of the year as firms continue to move production units closer to markets in a regional expansion binge.

Kenyan firms received orders worth Sh71.74 billion from Uganda, Tanzania and Rwanda by September, down from Sh76.09 billion in a similar period last year.

Officials say the growing tendency by local firms to set up industrial plants in the neighbouring states has ensured steady supply of goods that previously had to be imported from Kenya.

“These nations have been developing industries locally over the years, which has resulted in cutting orders for goods previously sourced from outside,” said Joseph Kosure, head of Bilateral Trade Division and AGOA unit at the Ministry of Foreign Affairs and International Trade.

He cited edible oil manufacturer Bidco and Rhino Cement, which have since set up plants in Uganda and Tanzania.

“This is actually welcome since it shows the region is growing in tandem with the East African Community spirit where no nation is left behind,” said Mr Kosure.

In the period to September, Kenya’s exports to Uganda fell 9.7 per cent to Sh35.96 billion while those to Tanzania remained little changed at Sh27.23 billion. Kenya’s exports to Rwanda shrank to Sh8.55 billion in the period from Sh9.12 billion last year.