@BusinessDaily

Kenya Africa exports slide continues to new eight-year low

6 days ago, 18:42

By: Constant Munda

Kenya’s exports to key markets in Africa fell to an eight-year low in the first four months of the year, official statistics show, continuing a trend that has been reflected in annual data over the years.

Latest data by the Central Bank of Kenya (CBK) show earnings from the continent were about Sh71.44 billion, a 4.5 per cent drop compared to the same period in 2017 and the lowest since 2010.

Reduced trade between Kenya and the rest of Africa is in keeping with a trend observed in the 12 months to December 2017.

Kenyan factories have been losing their market share in Africa despite the country being a member of the six-nation East African Community (EAC) and 19-member Common Market for Eastern and Southern Africa (Comesa) partly due to import substitution amid dwindling industrial competitiveness.

Export orders from neighbouring Uganda, the country’s largest market in Africa, for example fell by 5.69 per cent in the period to Sh20.41 billion, maintaining a flat trend witnessed in recent years.

“We don’t get our VAT refund on time, we don’t get export incentives and that’s why our trade within the region has been reducing,” Kenya Association of Manufacturers (KAM) vice chairman Sachen Gudka said in an interview late April.

“The government should address competitiveness because when you look at Kenya in terms of global benchmarks, cost levels are at least 10 per cent higher.”

Kenya’s exports to Africa, however, accounted for 33.74 per cent of her total exports, which stood at Sh211.71 billion between January and April, the CBK data shows.

Intra-Africa trade remains at a lowly 10 per cent, meaning African countries trade more with other continents such as Europe than they do among themselves.

The country is championing a plan to remove trade barriers among African countries to grow movement of goods, services and labour through African Continental Free Trade Area (AfCFTA) which will create a market of at least 1.2 billion people upon ratification.

Kenya and Ghana on May 10 became the first countries to ratify the AfCFTA deal which requires a minimum of 22 countries to be operationalised.

President Uhuru Kenyatta’s administration also became the first country last Friday to present documents ratifying the proposed Comesa-EAC- Southern African Development Community (SADC) tripartite free trade area.

The Comesa-EAC-SADC trade agreement, reached in June 2015 bringing together 27 Eastern, Central and Southern Africa’s countries, requires a minimum of 14 countries to ratify in order to come into force.


Read More


Category: business news

Suggested

2 hours ago, 11:55
@StandardMedia - By: Otiato Guguyu
How Government will make half a million Kenyans home owners

Every Kenyan with a payslip will help the Government fund the half a million housing units plan under proposals fronted by... ...

Category: business news
3 hours ago, 11:35
@StandardMedia - By: Cyrus Ombati
More than half of alcohol consumed in Kenya is illicit, says alliance

Up to 60 per cent of alcohol in Kenya is illicit and dangerous, more than double previous estimates by the World Health Organisation. ...

Category: business news
1 hours ago, 13:13
@BusinessDaily - By: The Citizen
TZ seizes fish at MPs' canteen, minister apologises

A ministry official had on Monday used a ruler to measure the length of processed tilapia on a plate before impounding the two kilos of fish ...

Category: business lifestyle news
4 hours ago, 10:18
@CapitalFMNews - By: Wambui Waweru
Hackers steal $30m from top Seoul bitcoin exchange

SEOUL, South Korea, Jun 20 - Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's pric Kenya breaking news | Kenya news today | ...

Category: business finance
7 hours ago, 06:49
@BusinessDaily - By: Abiud Ochieng
Kenya lawyer rules out analysing Anglo Leasing data

The lawyer, through mutual legal assistance, got documents from the Swiss government ...

Category: business news opinion economy
2 hours ago, 12:14
@CapitalFMNews - By: Kennedy Kangethe
Jubilee Insurance taps into microinsurance with premiums low as Sh20

NAIROBI, Kenya, Jun 20 - Jubilee Insurance on Wednesday launched microinsurance product targeting low-income earners in partnership with Bluewave Microfina Kenya breaking news | Kenya news today | ...

Category: business

@BusinessDaily

Kenya Africa exports slide continues to new eight-year low

6 days ago, 18:42

By: Constant Munda

Kenya’s exports to key markets in Africa fell to an eight-year low in the first four months of the year, official statistics show, continuing a trend that has been reflected in annual data over the years.

Latest data by the Central Bank of Kenya (CBK) show earnings from the continent were about Sh71.44 billion, a 4.5 per cent drop compared to the same period in 2017 and the lowest since 2010.

Reduced trade between Kenya and the rest of Africa is in keeping with a trend observed in the 12 months to December 2017.

Kenyan factories have been losing their market share in Africa despite the country being a member of the six-nation East African Community (EAC) and 19-member Common Market for Eastern and Southern Africa (Comesa) partly due to import substitution amid dwindling industrial competitiveness.

Export orders from neighbouring Uganda, the country’s largest market in Africa, for example fell by 5.69 per cent in the period to Sh20.41 billion, maintaining a flat trend witnessed in recent years.

“We don’t get our VAT refund on time, we don’t get export incentives and that’s why our trade within the region has been reducing,” Kenya Association of Manufacturers (KAM) vice chairman Sachen Gudka said in an interview late April.

“The government should address competitiveness because when you look at Kenya in terms of global benchmarks, cost levels are at least 10 per cent higher.”

Kenya’s exports to Africa, however, accounted for 33.74 per cent of her total exports, which stood at Sh211.71 billion between January and April, the CBK data shows.

Intra-Africa trade remains at a lowly 10 per cent, meaning African countries trade more with other continents such as Europe than they do among themselves.

The country is championing a plan to remove trade barriers among African countries to grow movement of goods, services and labour through African Continental Free Trade Area (AfCFTA) which will create a market of at least 1.2 billion people upon ratification.

Kenya and Ghana on May 10 became the first countries to ratify the AfCFTA deal which requires a minimum of 22 countries to be operationalised.

President Uhuru Kenyatta’s administration also became the first country last Friday to present documents ratifying the proposed Comesa-EAC- Southern African Development Community (SADC) tripartite free trade area.

The Comesa-EAC-SADC trade agreement, reached in June 2015 bringing together 27 Eastern, Central and Southern Africa’s countries, requires a minimum of 14 countries to ratify in order to come into force.


Read More

Category: business news

Suggested

2 hours ago, 11:55
@StandardMedia - By: Otiato Guguyu
How Government will make half a million Kenyans home owners

Every Kenyan with a payslip will help the Government fund the half a million housing units plan under proposals fronted by... ...

Category: business news
3 hours ago, 11:35
@StandardMedia - By: Cyrus Ombati
More than half of alcohol consumed in Kenya is illicit, says alliance

Up to 60 per cent of alcohol in Kenya is illicit and dangerous, more than double previous estimates by the World Health Organisation. ...

Category: business news
1 hours ago, 13:13
@BusinessDaily - By: The Citizen
TZ seizes fish at MPs' canteen, minister apologises

A ministry official had on Monday used a ruler to measure the length of processed tilapia on a plate before impounding the two kilos of fish ...

Category: business lifestyle news
4 hours ago, 10:18
@CapitalFMNews - By: Wambui Waweru
Hackers steal $30m from top Seoul bitcoin exchange

SEOUL, South Korea, Jun 20 - Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's pric Kenya breaking news | Kenya news today | ...

Category: business finance
7 hours ago, 06:49
@BusinessDaily - By: Abiud Ochieng
Kenya lawyer rules out analysing Anglo Leasing data

The lawyer, through mutual legal assistance, got documents from the Swiss government ...

Category: business news opinion economy
2 hours ago, 12:14
@CapitalFMNews - By: Kennedy Kangethe
Jubilee Insurance taps into microinsurance with premiums low as Sh20

NAIROBI, Kenya, Jun 20 - Jubilee Insurance on Wednesday launched microinsurance product targeting low-income earners in partnership with Bluewave Microfina Kenya breaking news | Kenya news today | ...

Category: business
Our App