Kenya has fallen a step behind Tanzania as Uganda’s largest trading partner. This is according to the latest data shared by the Bank of Uganda.
Kenya has traditionally been Uganda’s largest trading partner, however, the latest data indicates a shift, perhaps a worrying trend for President William Ruto’s administration.
Data from the Bank of Uganda shows that in the year ending June 2024, Uganda imported goods worth USD 4.17 billion (about Ksh538.7 billion) from COMESA and the Rest of Africa, with nearly half coming from Tanzania.
The Uganda Revenue Authority (URA) indicated that most imports from Tanzania were gold, rolled iron or non-alloy steel, groundnuts, and bottles.
Gold made up the largest share of Uganda’s imports from Tanzania, with Uganda importing gold worth Ksh52.5 billion (about 1.08 trillion Tanzanian shillings) in 2023, according to URA data.
In the year ending June 2024, 42.56% of Uganda’s imports from Africa came from Tanzania, compared to 19.55% from Kenya and 6.43% from South Africa.
While Kenya was Uganda's second-largest import source, Uganda bought more cement, petroleum products, and rolled iron sheets from Kenya than any other African nation.
The Bank of Uganda also reported that Uganda spent USD 1.77 billion (around Ksh228.6 billion) on imports from Tanzania in the same period, more than three times the amount spent the previous year.
Other top sources of imports for Uganda included South Africa, Côte d’Ivoire, and Burkina Faso.
The East African Community (EAC) plays a crucial role in facilitating trade among member states. Changes or enhancements in trade agreements can lead to shifts in import patterns which occur periodically.
This change highlights the evolving nature of trade relationships within East Africa and may prompt both Kenya and Tanzania to reassess their strategies for engaging with Uganda and other neighbouring markets.
Kenya, which for years had been Uganda’s leading source of imports in Africa, is now in second position, with a contribution worth USD 816.71 (approximately Ksh105.5 billion), which was a slight reduction from the previous year.
