A report by the Kenya National Bureau Statistics (KNBS) revealed that tea and coffee exports declined in the month of December, a development that could spell doom to Kenya’s economy.
The latest Economic Indicators Report of December 2024 by KNBS noted that tea exports in December 2024 dropped to 49,700 metric tonnes from 53,300 metric tonnes in November. This was further compounded by an overall drop in tea production in November.
This has the potential knock-on effect of hampering Kenya’s economic growth with tea exports accounting for roughly 23 per cent of the country’s foreign exchange earnings. Annually, the country produces over 450 million Kilogrammes of tea, which earns the country over Ksh120 billion in export earnings and Ksh22 billion in local sales.
On the other hand, coffee exports recorded the lowest yearly figures at 2,647 metric tonnes down from 4,121 metric tonnes in November. Concurrently, there was a reduction of the coffee export value from Ksh2.9 billion in November to Ksh1.9 billion in December.
In the same breadth, the overall value of domestic exports recorded an all-year low coming at Ksh69.4 billion in December 2024. This was translated into a decrease in the overall trade volume from Ksh313.6 billion in November 2024 to Ksh298.7 billion in December 2024.
Food and beverages, which make up a significant portion of domestic exports, recorded a decrease with monthly figures for December set at Ksh28.3 billion. This was from Ksh31.3 billion in November.
The figures highlighted a worrying trend with the country heavily depending on food and beverages to set the pace for domestic exports.
Even so, dry beans, which constitute a significant chunk of the country’s food basket, recorded a decline in prices offering a reprieve to consumers. The price of dry beans per kilo in December 2024 was Ksh150. This was down from November when the price went to Ksh153. However, this was in stark contrast to December 2023 when a kilo of dry beans retailed for Ksh170.
Despite recording a slight increase in monthly prices in December, dry maize recorded a sharp decline in yearly prices. In December 2024, a kilo of dry maize retailed at Ksh50 per kilo compared to Ksh70 in December 2023. The drop is expected to provide some relief to consumers in light of the tough economic times.
The report highlighted that Uganda, the USA, and Pakistan were Kenya's primary export destinations in December 2024, with export values of Ksh7.4 billion, Ksh6.0 billion, and Ksh5.2 billion, respectively.
The dominant export category was food and beverages, accounting for 40.8 per cent of total exports. Non-food industrial supplies comprised 25.8 per cent, while machinery and other capital equipment constituted 2.0 per cent of total exports.
On the flipside, China, the United Arab Emirates, and India were Kenya's leading import partners in December 2024, with import values of Ksh53.2 billion, Ksh33.1 billion, and Ksh18.8 billion, respectively.
