BusinessHomeMain StoryNational NewsNews

Kenya exports decline by 6.9% in Q1 2025 to Sh276.7 billion compared to last year

The value of exports to Asia declined by 17.7 per cent to Sh66.1 billion in first quarter of 2025 from Sh80.3 billion in the corresponding quarter of 2024

Kenya’s total export earnings stood at Sh276.7 billion in the first quarter of 2025 and declined by 6.9 per cent from Sh297.3 billion recorded during the same period in 2024, data from the Kenya National Bureau of Statistics (KNBS) shows.

Africa continued to dominate as the country’s top export destination, accounting for 36.9 per cent of the total export receipts in the first quarter of 2025. However, exports to the continent contracted by 10.1 per cent, largely due to lower shipments to key markets including Egypt (38.6 per cent), Ethiopia (34.2 per cent), South Sudan
(19.8 per cent), and the Democratic Republic of Congo (20.3 per cent). In contrast, exports to Burundi and South Africa increased by 46.9 per cent and 7.5 per cent, respectively, over the review period.

The value of exports to Asia declined by 17.7 per cent to Sh66.1 billion in first quarter of 2025 from Sh80.3 billion in the corresponding quarter of 2024. This decline was mainly driven by reduced domestic exports of tea and re-exports of kerosene type jet fuel to Saudi Arabia and the United Arab Emirates, alongside decreased domestic shipments of tea to Yemen Arab Republic and Pakistan. Nonetheless, there were marked increases in domestic exports of tea to Jordan.

According to the KNBS Quarterly Balance of Payments Statistical Release for the first quarter of 2025, export earnings from the European market fell by 10.4 per cent, from Sh75.9 billion in first quarter of 2024 to Sh68.0 billion in the first quarter of 2025.

See also  KNBS chief Macdonald Obudho explains difference between inflation statistics and ‘ground reality’

“The decline was attributed primarily to decreased domestic exports of cut flowers and re-exports of kerosene type jet fuel to the Netherlands; and tea to the United Kingdom. Conversely, exports to Belgium grew by Sh1.7 billion largely on account of increased domestic exports of coffee to this destination,” he said.

Exports to America contracted to Sh21.3 billion in the quarter under review from Sh23.6 billion in first quarter of 2024. This was majorly due to decline in domestic exports of titanium ores and concentrates, and re-exports of kerosene type jet fuel to the United States of America.

According to the report, import expenditure in the first quarter of 2025 amounted to Sh652.3 billion, declining
from KSh 683.2 billion recorded in the same period of 2024. This translated to a 4.5 per cent contraction, driven primarily by reduced imports from Europe, America and Africa.

“Asia continued to account for the largest share of imports at 68.3 per cent. The value of Imports from this region expanded to Sh445.6 billion, buoyed by increased shipments from China, which rose from Sh126.0 billion in the first quarter of 2024 to Sh148.6 billion in the first quarter of 2025. Notably, imports from Saudi Arabia more than doubled while imports from the United Arab Emirates grew by 37.4 per cent, largely due to increased
importation of petroleum products from these sources,” it says.

Other source countries that had increased import bills during the review period were Indonesia (50.6 per cent) and Japan (12.8 per cent). In contrast, over the same period, imports from Oman and Pakistan dropped by
96.4 per cent and 76.1 per cent to Sh1.0 billion and Sh3.9 billion, respectively over the same period. This was largely occasioned by reduced imports of rice from Pakistan and kerosene type jet fuel and gas oil from Oman.

See also  Court allows parties to use their register for nomination

“In the first quarter of 2025, the import bill from Europe reduced from Sh105.4 billion in the first quarter of 2024 to Sh83.4 billion. This was most pronounced within the European Union, where countries such as the Netherlands and Belgium recorded major declines,” the report adds.

Specifically, imports from the Netherlands and Belgium fell by 75.2 per cent and 72.8 per cent, respectively, largely due to reduced importation of motor spirit (gasoline) premium from these sources. However, imports from Poland rose by 77.3 per cent driven by increased imports of waste and scrap of cast iron and alloy steel.

According to KNBS, the import value attributable to African trade partners dipped by 6.9 per cent to Sh66.9 billion in the first quarter of 2025. Key contributors to the decline included Tanzania (24.2%), South Africa (13.2%), and Eswatini (26.3 per cent), as imports of coal; chemical fertilizers and mosquito nets; and essential oils from these sources, respectively, slowed. In contrast, imports from Uganda rose by 12.1 per cent partly due to increased importation of sugar from this source.

The value of imports from America registered a 22.5 per cent decline from the first quarter of 2024 to Sh50.5 billion in the first quarter of 2025. This was largely driven by decreases in imports of aeroplanes and other aircrafts; and diagnostic or laboratory reagents from the United States of America.

Notable declines in imports of sugar from Brazil; and aeroplanes, other aircrafts, wheat and meslin from Canada also contributed to the decline in imports from America.

See also  Cuba to dispatch 101 medical specialists to the country

On the contrary, expenditure on imports from Australia and Oceania increased from Sh861.0 million in the first quarter of 2024 to Sh4.1 billion in the first quarter of 2025. This spike was largely due to increased importation of sorghum grain from Australia.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button