Kenya’s imports and exports recorded a drop in 2023 compared to 2022 according to the latest Monetary Policy Committee (MPC) report released by the Central Bank of Kenya (CBK) on Tuesday, January 6.
Goods exported by Kenya to its trading partners declined by 2.2 per cent while imports declined by 10.6 per cent in 2023.
This was despite Kenya seeing a growth of 9.3 per cent in exports and a 7.3 per cent increase in imports during a similar period in 2022.
The CBK report was released a month after data from the Kenya National Bureau of Statistics (KNBS) showed that export trade between Kenya and Uganda dropped by Ksh2 billion between September and November 2023.
Similarly, exports to Tanzania dropped by Ksh700 million between October and November 2023. Of Kenya's main EAC trading partners, only Rwanda registered a marginal increase of Ksh100 million over the same period of time.
“The decline in exports in 2023 was across several categories, except food, chemicals and manufactured goods exports which increased by 0,8 per cent, 2.8 per cent, and 11.3 per cent respectively,” CBK noted.
It should be noted that food is one of Kenya’s main exports with the country being an agriculture-intensive economy.
The increase in volumes for food products was largely attributed to growing markets in the United States, the European Union, the United Kingdom and China.
While trade with neighbouring countries could be experiencing a slump, CBK noted a growing demand in the region for manufactured goods.
For imports, it was noted that there was a reduction in all categories except for food and crude materials.
This was compensated by a 30.7 per cent increase in tourist arrivals and a 4 per cent increase in remittances.
Remittances and tourism are Kenya's major foreign exchange earners; in 2023, Kenyans in the diaspora sent home Ksh672 billion.
While 2023 was turbulent, CBK forecasted a recovery in imports, resilient remittances and a rebound in agricultural exports over the course of 2024.
