Kenya’s trade deficit jumped to Sh101.6 billion in April

Kenya’s trade deficit jumped to Sh101.6 billion in April

August 5, 2019 0 By mykenyancareers
MUNYA CHINA AVOCADO - Kenya’s trade deficit jumped to Sh101.6 billion in April
China remains Kenya’s largest source of imports for machinery and transport equipment, accounting for Sh291.8 billion/FILE

NAIROBI, Kenya, Aug 5 – Kenya’s reliance on imported products from international markets continues with Capital Markets Authority noting a jump in trade deficit to Sh101.6 billion in April 2019 from Sh100 billion in the same month a year ago.

Exports advanced by 0.5 percent to Sh43.4 million while imports increased by 0.2 percent to Sh150.4 billion.

There were higher sales of chemicals at 6.4 percent, fish 54.9 percent and petroleum 87 percent which were offset by declines in those of vegetables -0.2 percent; tea -12.2 percent; coffee -13.4 percent and cement -83.5 percent.

The country’s overall crop output has been hit by prolonged drought conditions, causing substantial delays in planting operations.

On the other hand, imports were boosted by food & live animals by 9.3 percent; mineral fuels 18.2 percent; crude materials 38 percent and beverages & tobacco 18.3 percent.

China remains Kenya’s largest source of imports for machinery and transport equipment, accounting for Sh291.8 billion followed by India at Sh161.2 billion, Saudi Arabia (Sh138.4 billion) and UAE (Sh126 billion).

On the other hand, imports increased by 0.2 percent to Sh150.4 billion which was boosted by food & live animals at 9.3 percent, mineral fuels at 18.2 percent, crude materials at 8 percent and beverages & tobacco at 18.3 percent.

In contrast, purchases for chemicals, machinery & transport equipment and manufactured goods fell by -14.2 percent, -9.9 percent and manufactured goods -0.4 percent respectively.

Balance of Trade in Kenya averaged -44,492.18 Million Kenya shillings from 1998 until 2019, reaching an all-time high of -2175 Million shillings in June of 1999 and a record low of -119,463 Million shillings in September of 2014.