Kenya’s exports to other African countries in the first seven months of 2024 jumped by 26 per cent to $1.93 billion (Sh248.7 billion) from $1.53 billion (Sh197.3 billion) during the same period the previous year, Central Bank of Kenya (CBK) data reveals.
According to recent economic reports from several authorities, the growth was primarily boosted by increased shipment, strengthened bilateral relations and increased demand for tea and re-exports of jet fuels in the first quarter.
The rise was also driven an increase in export earnings in the first quarter from Egypt which jumped by 45.7 per cent to Sh10.47 billion and the Democratic Republic of Congo (DR Congo) by 56 per cent to Sh8.2 billion.
Kenya also experienced a surge in export earnings from Tanzania by 18 per cent to Sh16.74 billion, Uganda by 7.4 per cent to Sh33.34 billion and South Sudan by 25.7 per cent to Sh9.27 billion.
A recent CBK report shows that in the period under review, Kenya’s main exports were oil and lubricants (re-exports), tea, coffee, oil, animals, vegetable fats, clinker, wheat flour and manufactured goods. Most of the exports from Kenya were sold in Uganda, Tanzania and Rwanda as well as DR Congo and South Africa which registered strong demand.
Uganda came up as Kenya’s largest export market in the continent during this time contributing $599.2 million (Sh77.3 billion) of the total export earnings with Tanzania following accounting for $287.8 million (Sh37.1 billion).
Kenya also shipped goods worth $185.4 million (Sh23.9 billion) to Rwanda and $139.7 million (Sh18.02 billion) to DR Congo. Kenya’s total exports in the first quarter of 2024 grew by 28 per cent rising from Sh232.7 billion in the first quarter of 2023. Africa remained the largest market for Kenya’s exports accounting for 38.3 per cent of total export earnings in the quarter under review.
Domestic exports
According to Kenya National Bureau of Statistics (KNBS) trade report for the quarter ended March, the increase in the first quarter was attributable to increased domestic exports.
“Notably, there were increased domestic exports of tea to Egypt; wheat flour to the Democratic Republic of Congo; carboys, bottles, flasks, and similar articles to Uganda; household or laundry-type washing machines to South Sudan; and re-exports of kerosene-type jet fuel to Tanzania,” KNBS says.
Kenya has strengthened bilateral ties with many African countries, including Ethiopia, Ghana, Tanzania, South Africa, Rwanda and Egypt as the country champions for the elimination of trade barriers between African countries.
The surge in African exports could also be attributed to the introduction of a visa-free policy in January 2024 seeking to capitalise on the African Continental Free Trade Area (AfCFTA). Kenya’s exports to the continent rose 21.4 per cent in 2023 to stand at $3.05 billion (Sh393.4 billion).
The AfCFTA, one of the Flagship Projects of Agenda 2063 Africa’s development framework, aims at accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening the continent’s common voice and policy space in global trade negotiations.
One of its objectives is to create a single market for goods, and services, facilitated by the movement of persons to deepen the economic integration of the African continent.
