Kenya’s exports to Tanzania dipped in the first five months of 2017

Kenya National Bureau of Statistics (KNBS) data indicate Kenya’s exports to Tanzania dipped 33.52 percent y/y to perch at KES 8.2Bn in the first five months of 2017.

This exemplifies the trade spat between the two countries which saw Kenya banning gas imports from Tanzania while Tanzania reciprocating with milk and cigarette export ban.

Read: Kenya, Tanzania reopen their borders calling an end in trade spat

The LPG gas import ban has affected 40 percent of Tanzania’s 100,000 metric tonnes export market. Other than the exports ban, we opine that the influx of cheaper Far East products has pinched off Kenya’s Tanzanian export market size.

In the report, Leading Economic Indicators June 2017 issue, the volume of trade improved from KSh 173.9 billion in April 2017 to KSh 204.1 billion in May 2017.

The value of total exports increased to KSh 52.7 billion while the value of imports rose from KSh 129.1 billion in April 2017 to KSh 151.4 billion in May 2017.

Domestic exports by Broad Economic Category (BEC) indicated that food and beverages was the main export category in May 2017 accounting for 49.5 per cent of exports, while non-food industrial supplies and consumer goods not elsewhere specified accounted for 22.0 per cent and 25.2 per cent of the value of total domestic exports, respectively.

Imports by BEC indicate that non-food industrial supplies was the main import category in May 2017 with a share of 32.0 per cent. Machinery and other capital equipment; fuel and lubricants; and transport equipment constituted 18.0, 16.0 and 13.4 per cent, of the total value of imports, respectively.

Imports of food and beverage recorded a share of 12.6 per cent of the total imports while consumer goods not elsewhere specified recorded a share of 7.8 per cent.