Africa revs up Kenya’s exports to hit 5.5pc mark in Q3 2024
By Ian Okal and Agencies, January 13, 2025
Kenya’s exports recorded a 5.5 per cent increase in the third quarter of 2024, providing a silver lining amid the broader economic slowdown. The rise in export earnings is seen as a crucial boost for the country, which has been grappling with contractions in key sectors like construction and mining.
According to the Kenya National Bureau of Statistics (KNBS), the growth in exports during this period was driven by agricultural produce, particularly tea, horticultural products, and coffee, which continue to be top foreign exchange earners.
The transportation and storage sector, which grew by 5.2 per cent during the same period, also played a supportive role in facilitating export activities.
During that period, Kenya’s exports increased by 5.5 per cent to Sh284.4 billion (about $2.19 billion) in the third quarter of 2024 compared to the same period in 2023, says the National Statistics Bureau.
Latest Kenya National Bureau of Statistics (KNBS) data shows that Africa continued to account for the largest share of total export earnings at 39.6 per cent, despite a decline of 5.2 per cent compared to the same period in 2023.
“The decline was partly on account of reduced exports to Egypt (32.6 per cent), Tanzania (10.4 per cent), Burundi (36.9 per cent) and South Sudan (27.5 per cent),” said KNBS.
The statistics bureau noted that exports to Asia increased to 79.3 billion Kenyan shillings (about 612.8 million dollars), primarily driven by increased re-exports of kerosene-type jet fuel to the United Arab Emirates and exports of pigeon peas to India.
The KNBS said that earnings from exports to the European Union declined slightly to Sh38 billion ($293.7 million) from $38.8 billion ($299.8 million) in 2023, partly a result of reduced domestic exports of cut flowers.
Compared to the same period in 2023, when the GDP growth rate stood at 6.0 per cent, Kenya’s economy experienced a further decline which KNBS attributes to a general slowdown in growth across most sectors of the economy.
Exports of Apparel
During that period, revenue from exports to America rose by 46.8 per cent to Sh26.2 billion ($202.5 million) compared to 2023, largely due to an increase in domestic exports of apparel and clothing accessories, as well as re-exports of kerosene-type jet fuel to the United States.
“The growth was constrained by contractions in construction and mining and quarrying activities,” the report states. Construction activities recorded a contraction of 2.0 per cent, while mining and quarrying experienced a sharper decline, contracting by 11.1 per cent.
Despite these setbacks, the report highlights sectors that supported growth during the period. Agriculture, forestry, and fishing posted a growth rate of 4.2 per cent, transportation and storage activities grew by 5.2 per cent, and financial and insurance activities recorded a 4.7 per cent increase.
Other notable contributors include real estate activities, which grew by 5.5 per cent, wholesale and retail activities with a 4.8 per cent increase, and accommodation and food service activities, which saw the most significant growth at 13.7 per cent.
Kenya’s economic growth slowed to four per cent in the third quarter of 2024, despite easing inflationary pressures and a stronger shilling.
The statistics bureau says thart the economy contracted by 2 per cent compared to the 6 per cent growth reported in the same period in 2023.