Exports surged to Ksh95b in May despite dip in volumes
Kenya’s total export value increased from Sh92.9 billion in April 2024 to Sh94.5 billion in May 2024, despite a decline in exports of coffee, tea, cut flowers, and vegetables, says new data by the Kenya National Bureau of Statistics (KNBS).
The economic indicator reports show that coffee exports decreased from 5,400 metric tonnes in April 2024 to 4,700 metric tonnes in May 2024, with their value dropping from Sh3.9 billion to Sh3.6 billion during the same period.
“The tea exports have also experienced a decline as their volumes dropped from 56.3 thousand metric tonnes in April 2024 to 51.6 thousand metric tonnes in May 2024, with a corresponding decline in their value from Sh17.3 billion to Sh15.6 billion,” the report stated.
In the horticulture sector, vegetables and cut flowers also faced a decline in their exports, with volumes falling to 14,600 and 8,700 metric tonnes from 16,200 and 16,100 metric tonnes respectively in the period of March and February 2024.
Vegetable exports dropped in value to Sh2.8 billion in March from Sh3.6 billion in February 2024. The value of cut flower exports also halved from Sh13.3 billion in February to Sh6.1 billion in March.
In May 2024, Uganda and Pakistan were Kenya’s primary export destinations, with values of Sh10.6 billion and Sh6.7 billion, respectively. Despite the decline, food and beverage exports comprised the largest category of exports at 44.2 per cent.
The total trade value experienced a decline, falling from Sh329.1 billion in April 2024 to Sh307.1 billion in May 2024. The import sector also saw a decline, with the total import value dropping from Sh236.2 billion in April to Sh212.6 billion in May 2024. In May of the previous year, tea exports dropped in value from Sh16.1 billion to Sh15.6 billion. Contrary to the drop in value, the volume of tea exports increased from 48,299 metric tonnes to 51,575 metric tonnes during the same period.
Tea Board of Kenya says, tea exports rose to 155.8 million kg in the first quarter of 2024, up from 131.1 million kg in January-March 2023.
Dip in May export value
In May of the previous year, coffee exports were valued at Sh4.7 billion for 6,359 metric tonnes. This year, the export value and volume dropped to Sh3.6 billion and 4,732 metric tonnes, respectively.
Cut flowers experienced a decline in value from Sh8.5 billion in May 2023 to Sh6 billion in May 2024, with the volume dropping from 14,728 metric tonnes to 8,724 metric tonnes during the same period.
Vegetables saw an increase in both value and volume, rising from Sh2.7 billion and 9,955 metric tonnes in May 2023 to Sh2.8 billion and 14,646 metric tonnes in May 2024.
The decline in cut flower exports could be attributed to stiff competition in the European Union market, especially from Ecuador and Colombia. Issues in vegetable exports include logistical constraints, market access issues, and the impacts of climate change.
The decline in export sectors could also be attributed to the country’s reliance on a fixed basket of products, leading to a loss of market share in the European Union (EU), according to the World Bank’s Economic Update on Kenya 2023.
“Exports offered to the EU have stagnated on the same products year-on-year, including flowers, coffee, tea, avocados, and green beans, for more than two decades,” the World Bank Economic Update reported.
Kenya’s total export value increased from Sh92.9 billion in April 2024 to Sh94.5 billion in May 2024, despite a decline in exports of coffee, tea, cut flowers, and vegetables, says new data by the Kenya National Bureau of Statistics (KNBS).
The economic indicator reports show that coffee exports decreased from 5,400 metric tonnes in April 2024 to 4,700 metric tonnes in May 2024, with their value dropping from Sh3.9 billion to Sh3.6 billion during the same period.
“The tea exports have also experienced a decline as their volumes dropped from 56.3 thousand metric tonnes in April 2024 to 51.6 thousand metric tonnes in May 2024, with a corresponding decline in their value from Sh17.3 billion to Sh15.6 billion,” the report stated.
In the horticulture sector, vegetables and cut flowers also faced a decline in their exports, with volumes falling to 14,600 and 8,700 metric tonnes from 16,200 and 16,100 metric tonnes respectively in the period of March and February 2024.
Vegetable exports dropped in value to Sh2.8 billion in March from Sh3.6 billion in February 2024. The value of cut flower exports also halved from Sh13.3 billion in February to Sh6.1 billion in March.
In May 2024, Uganda and Pakistan were Kenya’s primary export destinations, with values of Sh10.6 billion and Sh6.7 billion, respectively. Despite the decline, food and beverage exports comprised the largest category of exports at 44.2 per cent.
The total trade value experienced a decline, falling from Sh329.1 billion in April 2024 to Sh307.1 billion in May 2024. The import sector also saw a decline, with the total import value dropping from Sh236.2 billion in April to Sh212.6 billion in May 2024. In May of the previous year, tea exports dropped in value from Sh16.1 billion to Sh15.6 billion. Contrary to the drop in value, the volume of tea exports increased from 48,299 metric tonnes to 51,575 metric tonnes during the same period.
Tea Board of Kenya says, tea exports rose to 155.8 million kg in the first quarter of 2024, up from 131.1 million kg in January-March 2023.