Intra-Africa trade took 40 per cent of the exports worth Sh234.1 billion indicating a need to ease movement of goods and services.
The Economic Survey 2017 shows the East African Community that brings together Kenya, Uganda, Tanzania, Rwanda and Burundi continued to provide Kenya with a ready market that accounted for 51.9 per cent of the intra-Africa trade.
The bloc, which is pursuing integration at economic and political levels, has also provided a ready market for Kenyan investments in manufacturing, banking and provision of professional services.
Somalia that is slowly returning to normalcy provided Kenya with the largest gains as export volumes of fresh and processed products doubled.
Exports in 2016 stood at Sh17.9 billion, an indication that a stable Mogadishu means good business for Kenya.
Uganda remained the biggest market for Kenyan goods where Sh62 billion worth was sold with Rwanda receiving goods valued at Sh17.5 billion, Burundi Sh7.2 billion and Tanzania recorded Sh34.8 billion up from 2015 Sh33.7 billion.
European Union came second accounting for 24 per cent of the exports worth Sh141.5 billion while the US imported goods worth Sh52.9 billion.