Kenya Airways Raises Value of Imports to Kenya

Kenya Airways’ purchase of the Dreamliner planes has had a positive impact on the country as a whole as it has led to an increase in the value of imports coming from the United States to a total of Sh 49.5 billion.

Last November, KQ made a move of adding two more planes, B787-8, that cost them Sh.22.4 each. This was meant to boost trade between Kenya and the United State, a strategy that seems to be working well.

The Kenya Airways had a target of acquiring a total of nine dreamliners as a way of embracing modernization and by the month of May 2015, it had already acquired six of them, remaining with three more. It again added two more in November, which raised the number to eight.

Before the increased import value, the national carrier had been undergoing some serious declines on imports from the US, which had dropped from Sh.162.5billion from the start of 2015 to Sh.117.4 billion in November.

Kenya’s largest markets in terms of imports for many years have been America, which takes the leading position, followed by China and India. Among the imports from the Us to Kenya are pharmaceuticals, machinery and electrical generators.

It is also the other way round since the Us tends to be among the top most countries for Kenya’s imports. It takes the second position after Uganda, which takes the leading position.

The growth of the African Growth and Opportunity Act trade pact that grants duty free access for African countries led to the country’s growth by Sh.1 billion.

Before the up rise of the airline in November, 2015 had seen the airline face a number of challenges that led it undergoing great losses, that it had to depend on debts for it to continue with its day to day operation. Among the challenges that were being faced included fuel price volatility, intense competition and the threat of terrorism and the Ebola epidemic.

Article by Vera Shawiza.