The total value of Kenya’s imports in the first three months ending March 2023 increased by Sh8 billion (or 1.37 per cent) as the government spent big to import fuel and subsidised fertiliser that was part of short-term plans to lower the cost of consumer goods.

By the end of December 2022, before Kenya inked the oil importation deal with the Gulf countries and fertiliser subsidy, the import value stood at Sh581.8 billion.

That is an Sh8 billion increase compared to Sh589.8 billion as of the end of March, according to the first quarter balance of payment report by Kenya National Bureau of Statistics (KNBS).

Fuel and lubricants accounted for the largest share of 24.7 per cent of the total import expenditure in the first quarter of 2023, reflecting a value of Sh145.7 billion. It was followed by industrial machinery, chemical fertilizer, edible oil, iron and steel, and unmilled wheat.

“Expenditure on imported chemical fertilisers went up from Sh8.3 billion in the first quarter of 2022 to Sh32.1 billion in the quarter under review, largely attributable to the government’s fertiliser subsidy programme,” KNBS says in the report.

The high expenditure on imports is on the back of a decline in the value of the Kenya shilling against the dollar. However, in terms of yearly comparison, the import value represents a marginal drop of 0.5 per cent compared to a similar period in 2022.

Similarly, import expenditure on commodities under food and beverages category exhibited an increase of 58.5 per cent from the first quarter of 2022, valued at Sh80.2 billion in the quarter under review.
Asian countries, led by China, continued to be the major source of Kenya’s imports, accounting for 66 per cent of the total expenditure during the period.

Import bill to the Middle East up-ticked by 8.7 per cent, largely contributed by a surge in imports of gas oil and motor spirit from the United Arab Emirates and Oman.

Export earnings grew faster during the period by 9.4 per cent to Sh233 billion between March 2022 and March 2023.