Kenya’s imports from EAC states rise 42.6pc

What you need to know:

Data collated by the Kenya National Bureau of Statistics (KNBS) indicate imports from the EAC countries increased by nearly one-and-a-half times compared with Sh22.56 billion in the corresponding period in 2016.
The growth in regional import bill is largely driven by landlocked Uganda where Kenya imported goods worth Sh41.16 billion between January and September 2018, a steep rise from Sh24.56 billion the year before.

The value of Kenya’s imports from neighbouring countries jumped by 42.64 per cent in nine months through September amid flat growth in exports, fresh official statistics show, hurting job opportunities for the youth.

Traders trucked in goods worth Sh54.83 billion from the six-nation East African Community (EAC) bloc compared with Sh38.44 billion in the same period in 2017, largely due to Kenya’s reliance on her neighbours for food supplies such as grains.

The data collated by the Kenya National Bureau of Statistics (KNBS) indicate imports from the EAC countries increased by nearly one-and-a-half times compared with Sh22.56 billion in the corresponding period in 2016.

The growth in regional import bill is largely driven by landlocked Uganda where Kenya imported goods worth Sh41.16 billion between January and September 2018, a steep rise from Sh24.56 billion the year before.

Exports to the EAC countries, on the other hand, continued a marginal but steady declining streak to Sh86.78 billion in the period from Sh86.86 billion a year earlier, Sh92.01 billion in 2016 and Sh96.83 billion in 2015.

Persistently higher demand for imports from the region than exports may mean Kenyan jobs are being lost to neighbouring countries such as Uganda.

Exports to Uganda remained flat during the review period at Sh46.09 billion from Sh46.92 billion in the January-September period of 2017.

Order book from Tanzania, however, grew to Sh22.17 billion from Sh20.76 billion while Rwanda’s increased to Sh13.49 billion from Sh13.07 billion.

Manufacturers have long blamed multiple fees and levies, relatively high power charges and inefficiencies at factories for piling up the cost of production, making locally made goods expensive in regional markets.

Exports to regional markets have also been hit by non-tariff barriers fuelled by mistrust and unresolved disputes among some of the EAC partner states.

Earnings from exports by Kenyan sugar confectionery firms, for example, fell by Sh304.5 million in the review period amid unresolved dispute on duty with Tanzania and Uganda.

Income from exports of the commodities such as sweets, chewing gum and chocolates dipped to Sh3.52 billion in the January-September 2018 period from Sh3.82 billion in the corresponding period in 2017, the statistics office says in its latest report.

Dar es Salaam and Kampala slapped a 25 per cent duty on Kenyan-made sugar confectionery in March 2018, claiming the use of zero-rated industrial sugar which tilted competition in favour of Nairobi factories.

The dispute was still unresolved by end of September 2018 even after Kenya chose not to renew duty-free window for the importation of table sugar when it expired earlier in June.