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Thursday, September 3, 2020
Covid-19 cuts imports by 20pc as businesses grind to a halt
By Frankline Sunday
Kenyan importers are counting billions of shillings in lost revenue as
global effects of the coronavirus pandemic continue to disrupt
international supply chains and trade in many countries.
Data from the Kenya National Bureau of Statistics (KNBS) indicates that
the total value of imports fell to Sh573.2 billion in the first seven
months of this year, compared to Sh716 billion recorded over a similar
period last year.
The United Arab Emirates (UAE) registered the largest fall in imports,
with Kenyan imports from the region falling to Sh48 billion in the first
seven months of this year, down from Sh102 billion in 2019.
The fall in imports is attributed to reduced local demand following the
government’s move in March to ban social gatherings and introduce
movement restrictions that disrupted operations of many businesses.
China remains Kenya’s largest source of imports, with trade volumes for
the first seven months of this year standing at Sh192 billion, a six per
cent drop compared to last year.
Kenya’s exports, however, seemed to defy the tough operating
environment, with the total value of exports for the first seven months
of the year standing at Sh206 billion, four per cent higher compared to a
similar period last year.
“Domestic exports by broad economic category indicated that food and
beverages were the main export category in July, accounting for 46.06
per cent of exports, while non-food industrial supplies accounted for
22.29 per cent of the total exports,” explains the KNBS in the latest
trade figures.
Exports to Uganda and Tanzania, two of Kenya’s major export markets in
the region, remained unchanged compared to the previous year, with total
exports standing at Sh30.5 billion and Sh15 billion respectively for
the seven months to July 2020.
Exports to other countries in Europe however, including the UK, Germany
and France went up marginally except in the Netherlands where Kenya’s
horticultural produce suffered from the grounding of international
flights.
Tea and coffee exports, which contribute heavily to foreign earnings,
posted a mixed performance. “The quantity of coffee exported decreased
from 5,414.08 tonnes in June 2020 to 3,546.25 tonnes in July 2020 and
its value dropped from Sh2.9 billion to Sh1.7 billion over the same
period,” said KNBS in its report.
“The quantity of tea exported increased from 46,399.01 tonnes in June
2020 to 46,850.57 tonnes in July 2020. However, the value of exported
tea dropped from Sh10.2 billion to Sh10 billion over the same period.”
The manufacturing sector also appeared to show signs of a rebound with
cement production increasing from 510,919 tonnes in June to 514,233
tonnes in July 2020.
Cement consumption, however, fell from 508,298 tonnes to 447,902 tonnes over the same period.
This is attributed to uncertainties experienced by real estate
developers, with only Sh61 billion worth of buildings approved for
construction in May by Nairobi City County, down from Sh250 billion in
May last year.
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