EXPLAINER
Hello Folks! Over the past few weeks, we have delved into Kenya's Trade and Economic Landscape. Today, we delve into balances of trade as we look at the STRUCTURAL ISSUES IN KENYA'S TRADE LANDSCAPE this week:
Hello Folks! Over the past few weeks, we have delved into Kenya's Trade and Economic Landscape. Today, we delve into balances of trade as we look at the STRUCTURAL ISSUES IN KENYA'S TRADE LANDSCAPE this week:
1. WHAT DOES KENYA TRADE AND WHO DOES IT TRADE WITH?
🚢Exports (Ksh 932.15 Billion)
🍵Tea (2024): Total Exports - 594,500 tonnes
Tea Earnings - KSh 215.21 Billion
Key Buyers - Pakistan, Egypt, UK, UAE, Russia
🚢Exports (Ksh 932.15 Billion)
🍵Tea (2024): Total Exports - 594,500 tonnes
Tea Earnings - KSh 215.21 Billion
Key Buyers - Pakistan, Egypt, UK, UAE, Russia
☕Coffee (2024): Export Volume - 53,519 tonnes of coffee
Export Earnings - KSH 38.4 Billion
Key Buyers - Belgium, USA and Germany
Export Earnings - KSH 38.4 Billion
Key Buyers - Belgium, USA and Germany
🌷Horticulture (first 10 months of 2024):
Key Buyers - The Netherlands, Germany, France, UK and Italy.
Vegetables - 80,141 tonnes worth KSh 22.17 Billion.
Fruits - 151,770 tonnes worth KSh 31.8 Billion.
Cut flowers - 83,694 tonnes worth KSh 68.1 Billion.
Key Buyers - The Netherlands, Germany, France, UK and Italy.
Vegetables - 80,141 tonnes worth KSh 22.17 Billion.
Fruits - 151,770 tonnes worth KSh 31.8 Billion.
Cut flowers - 83,694 tonnes worth KSh 68.1 Billion.
🚢Imports (Ksh. 2.6 Trillion) [2024]
🛢️Fuel: Import Value - KSH 575.5 Billion.
Import Volume - 5.2 million tonnes
Key Sellers - Saudi Aramco (Saudi Arabia), Abu Dhabi National Oil Company (ADNOC) (UAE) and Emirates National Oil Company (ENOC) (UAE).
🛢️Fuel: Import Value - KSH 575.5 Billion.
Import Volume - 5.2 million tonnes
Key Sellers - Saudi Aramco (Saudi Arabia), Abu Dhabi National Oil Company (ADNOC) (UAE) and Emirates National Oil Company (ENOC) (UAE).
🏗️Machinery (2024): Total Value - KSH 312.9 Billion.
It consists of computers, cranes, refrigerators and heavy construction machinery etc.
Key Sellers: China, UAE and India
It consists of computers, cranes, refrigerators and heavy construction machinery etc.
Key Sellers: China, UAE and India
💊Pharmaceuticals: Import Value - US$ 612 million
Import Volume - 37,079 tonnes
Key Sellers - India, USA, China and EU
Import Volume - 37,079 tonnes
Key Sellers - India, USA, China and EU
🌾Foodstuff:
Total Value - US$ 2.065 B
Total Volume - Wheat ~2.1 million tonnes, Rice 800K tonnes, Maize & Sugar volumes declined.
Key Sellers - Russia (wheat), Uganda (maize/sugar/milk), South Africa, India (rice/sugar), EU & USA.
Total Value - US$ 2.065 B
Total Volume - Wheat ~2.1 million tonnes, Rice 800K tonnes, Maize & Sugar volumes declined.
Key Sellers - Russia (wheat), Uganda (maize/sugar/milk), South Africa, India (rice/sugar), EU & USA.
2. WHAT ARE THE IMPLICATIONS OF KENYA'S PERSISTENT TRADE DEFICIT?
✅Foreign exchange: Kenya’s trade deficit increases demand for dollars, putting pressure on the shilling.
✅Inflation: A weaker shilling makes imports like fuel and food more expensive, raising the cost of living.
✅Foreign exchange: Kenya’s trade deficit increases demand for dollars, putting pressure on the shilling.
✅Inflation: A weaker shilling makes imports like fuel and food more expensive, raising the cost of living.
✅Vulnerability: Heavy reliance on imported fuel and food leaves Kenya exposed to global price shocks.
✅Industry: Local industries struggle to compete with imports, keeping manufacturing small and limiting factory jobs.
✅Industry: Local industries struggle to compete with imports, keeping manufacturing small and limiting factory jobs.
✅Jobs and credit: Borrowing to finance the gap raises interest rates, reducing business investment and job creation.
Ends!!
Ends!!
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