Workers at Canken International, at the Eldoret International Airport,
pack a consignment of avocados for export by Egypt Air Cargo destined
for Dubai. The report by KNBS also shows that Kenya’s exports to major
destinations like the UK and Egypt decreased whereas those to the United
Arab Emirates, Pakistan and Netherlands increased. JARED NYATAYA |
NATION
Kenya's exports to the East African region dropped in the first
eight months of this year, with the largest decline being registered
exports to Tanzania.
New data shows that Tanzania cut
imports from Kenya by more than $40.5 million to $134.2 million from
$174.7 million, as a trade war simmered between the two countries.
Kenya
has complained about products like cement, edible oils, textiles,
lubricants and products manufactured by industries outside the Export
Processing Zones that have been denied preferential market access to
Tanzania, because of issues related to the rules of origin.
Nairobi
has protested Tanzania’s decision to impose a higher local content
requirement of 75 per cent of total input in export tobacco, contrary to
the EAC agreement.
Data from the Kenya National Bureau of Statistics shows that exports to Uganda, which has been the largest market for Kenya’s goods, declined marginally in the eight months to August to $323 million, from $327.9 million, whereas Rwanda imports from Kenya increased to $93.64 million from $92.96 million.
Data from the Kenya National Bureau of Statistics shows that exports to Uganda, which has been the largest market for Kenya’s goods, declined marginally in the eight months to August to $323 million, from $327.9 million, whereas Rwanda imports from Kenya increased to $93.64 million from $92.96 million.
Pakistan
overtook Uganda as the largest buyer of Kenyan goods, importing goods
worth $394 million, as Kenya’s High Commissioner to Pakistan, Julius
Bitok, said there are huge business and trade opportunities that need to
be explored between the two countries.
A Kenyan
delegation has already attended four trade fairs in the Pakistani cities
of Karachi, Peshawar, Lahore and Islamabad, organised by Kenya’s High
Commission in Pakistan in association with the Pakistani Business
Association.
Decreased exports
The
report by KNBS also shows that Kenya’s exports to major destinations
like the UK and Egypt decreased whereas those to the United Arab
Emirates, Pakistan and Netherlands increased.
Kenya’s main exports to these countries are raw tea, coffee, pyrethrum, horticultural products and fruits and flowers.
This
comes even as the ratification of the Economic Partnership Agreement
with the EU has stalled with countries like Tanzania saying the deal is
skewed as it favours Europeans, threatening the local manufacturing
base.
US market
Buoyed
by the Africa Growth and Opportunity Act (Agoa), and driven by a rise
in clothing and apparels exports, earnings by Kenya from the US grew to
$313 million from $268.7 million.
The
KNBS figures show that imports from China rose to $2.6 billion in the
eight months to August, from $2.12 billion over the same period last
year, making it the leading source of imports in the Asian region.
Analysts have attributed the trade down turn in East Africa to encroachment in key market segments by Chinese products, local factors like taxation, new competing industries in export markets and instability in South Sudan.
Analysts have attributed the trade down turn in East Africa to encroachment in key market segments by Chinese products, local factors like taxation, new competing industries in export markets and instability in South Sudan.
Even as Kenya relies on Africa
to absorb more than 40 per cent of its manufactured exports, goods from
China have flooded the regional market, making the Asian giant the
biggest exporter to the region.
Kenya exports edible oil, fabric, food, animal products, tobacco and cement to the region, but the growing push by local firms to set up subsidiaries in East Africa has also seen a decline in the supply of these goods.
Kenya exports edible oil, fabric, food, animal products, tobacco and cement to the region, but the growing push by local firms to set up subsidiaries in East Africa has also seen a decline in the supply of these goods.
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