Kenya’s import bill to the American Continent more than doubled in the first quarter of 2024 from KSh 28.1 billion in the first quarter of 2023 to KSh 65.1 billion.
- •Latest quarterly balance of payment statistics from Kenya National Bureau of Standards (KNBS) largely attribute the bill to increase in imports from the United States of America, which rose from KSh 18.5 billion in the first quarter of 2023 to KSh 41.1 billion in the review period.
- •Kenya’s exports to America, on the other side, amounted to KSh 23.6 billion, reflecting an increase of 46.7 per cent from the first quarter of 2023.
- •There was increased re-exports of kerosene type jet fuel to the United States of America, which ultimately boosted the foreign exchange earnings from this region.
“Overall, imports in the first quarter of 2024 were valued at KSh 684.0 billion reflecting an increase of 16.0 per cent compared to the first quarter of 2023. This development resulted from increased expenditure on petroleum products and industrial machinery imports which rose by 16.3 per cent and 32.0 per cent, respectively,” says KNBS
“Similarly, there was a notable increase in imports of aircraft, associated equipment and parts, which went up from KSh 4.9 billion in the first quarter of 2023 to KSh 13.1 billion in the first quarter of 2024.”
Africa remained the largest market for Kenya’s exports, accounting for 38.3 per cent of total export earnings in the quarter under review. This was supported by increase in exports to Egypt (45.7 per cent), Democratic Republic of Congo (56.0 per cent), Tanzania (18.0 per cent), Uganda (7.4 per cent) and South Sudan (25.7 per cent).
Notably, there was increased domestic exports of tea to Egypt; wheat flour to 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.
During the first quarter of 2024, revenue from exports to Asia were valued at KSh 42.7 billion, representing an increase of 76.4 per cent from the first quarter of 2023.
The improvement was primarily on account of increased exports to Saudi Arabia and United Arab Emirates, which more than tripled and doubled, respectively.
Specifically, there was increased domestic exports of tea to Saudi Arabia, goat meat to United Arab Emirates; and re-exports of kerosene type jet fuel to these two countries.
On the contrary, exports to Iran declined by 45.5 per cent, resulting from decreased exports of tea to this destination.
In Western Europe, earnings from exports to the European Union (EU) went up by 39.9 per cent in the quarter under review compared to the first quarter of 2023. The growth was largely driven by increase in domestic exports of cut flowers and avocados; and re- exports of kerosene type jet fuel to the Netherlands.
Similarly, revenue from exports to the United Kingdom rose from KSh 13.5 billion in the first quarter of 2023 to KSh 19.0 billion in the first quarter of 2024, on account of increased domestic exports of tea and cut flowers to this country.
Imports from the EU exhibited a growth of 51.9 per cent, largely occasioned by increase in import bill to the Belgium, which rose more than fourfold; and the Netherlands, which more than doubled. Specifically, there was a surge in imports of motor spirit (gasoline) premium from these two sources.
On the other hand, import bill to Russian Federation dropped from KSh 28.6 billion in the first quarter of 2023 to KSh 13.9 billion in the quarter under review, largely contributed by decrease in imports of wheat and chemical fertilizers from this source.
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