Uganda has become the major export country for Kenya’s goods, with data from Kenya Revenue Authority (KRA) showing that exports to the neighbouring nation consistently led throughout
2024. The two countries who enjoy good bilateral relations just recently signed a tripartite agreement on the importation and transit of petroleum products through the two countries.

In February, exports to Uganda peaked at Sh11.76 billion before declining to Sh7.38 billion in December. Tanzania and the United Kingdom followed as the second and thirdlargest destinations, with the United Arab Emirates, Pakistan, and the US also ranking among key markets.Goods

Total domestic exports fluctuated significantly across 2024, with July recording the highest monthly export value at Sh80.4 billion before a gradual decline towards the year’s end. The pattern reflects broader economic shifts, including currency volatility and global market dynamics that afected Kenya’s trade balance.

“The decline was partly on account of reduced exports to Egypt (32.6 per cent), Tanzania (10.4 percent), Burundi (36.9 per cent) and South Sudan (27.5 per cent),” the KNBS said. According to the Kenya National Bureau of Statistics (KNBS), maintaining strong export performance requires continued trade facilitation eforts and enhanced value addition for key export goods.

Food and beverages remained the dominant export category, accounting for between 41per cent and 47 per cent of total exports throughout the year. Industrial supplies (non-food) and consumer goods also contributed significantly to Kenya’s export profile, making up nearly half of the country’s outbound trade.

The report noted that while Kenya has made progress in diversifying its exports, the country\ remains heavily reliant on agricultural goods, making it vulnerable to climate-related disruptions and international commodity price fluctuations.

The report further emphasised the need for further industrialisation to improve Kenya’s trade balance. The share of machinery and capital equipment in total exports remained below 3 per cent, while transport equipment exports were negligible.