Kenya’s import bill from the American continent more than doubled in the first quarter of 2024, rising to Kes 65.1 billion from Kes 28.1 billion in the first quarter of 2023.
According to the latest quarterly balance of payment statistics from the Kenya National Bureau of Standards (KNBS), this increase is primarily due to a significant rise in imports from the United States. Imports from the U.S. jumped to Kes 41.1 billion in the first quarter of 2024 from Kes 18.5 billion in the first quarter of 2023. Meanwhile, Kenya’s exports to America reached Kes 23.6 billion, marking a 46.7% increase from the same period in the previous year.
The increase in re-exports of kerosene-type jet fuel to the United States significantly boosted foreign exchange earnings from the region.
“Overall, imports in the first quarter of 2024 were valued at Kes 684.0 billion, reflecting a 16.0% increase compared to the first quarter of 2023. This rise resulted from increased spending on petroleum products and industrial machinery imports, which rose by 16.3% and 32.0%, respectively,” noted the KNBS report.
Additionally, there was a notable increase in the importation of aircraft, associated equipment, and parts, which rose to Kes 13.1 billion in the first quarter of 2024 from Kes 4.9 billion in the first quarter of 2023.
Africa remained the largest market for Kenya’s exports, accounting for 38.3% of total export earnings during the quarter. This growth was supported by increased exports to Egypt (45.7%), the Democratic Republic of Congo (56.0%), Tanzania (18.0%), Uganda (7.4%), and South Sudan (25.7%).
Significant increases were noted in domestic exports of tea to Egypt, wheat flour to the Democratic Republic of Congo, carboys, bottles, and flasks to Uganda, household washing machines to South Sudan, and re-exports of kerosene-type jet fuel to Tanzania.
Revenue from exports to Asia totalled Kes 42.7 billion, a 76.4% increase from the first quarter of 2023. This growth was mainly due to increased exports to Saudi Arabia and the United Arab Emirates, which more than tripled and doubled, respectively. Specific increases were noted in domestic exports of tea to Saudi Arabia, goat meat to the UAE, and re-exports of kerosene-type jet fuel to both countries.
However, exports to Iran declined by 45.5%, primarily due to a decrease in tea exports.
In Western Europe, earnings from exports to the European Union rose by 39.9% in the first quarter of 2024 compared to the same period in 2023. This growth was largely driven by increased domestic exports of cut flowers and avocados and re-exports of kerosene-type jet fuel to the Netherlands. Similarly, revenue from exports to the United Kingdom increased from Kes 13.5 billion in the first quarter of 2023 to Kes 19.0 billion in the first quarter of 2024, boosted by higher domestic exports of tea and cut flowers.
Imports from the EU also grew by 51.9%, largely due to a significant rise in the import bill from Belgium, which more than quadrupled, and the Netherlands, which more than doubled. This surge was mainly driven by increased imports of motor spirit (gasoline) premium from these countries.
Conversely, the import bill from the Russian Federation dropped from Kes 28.6 billion in the first quarter of 2023 to Kes 13.9 billion in the first quarter of 2024, mainly due to a decrease in imports of wheat and chemical fertilizers.
