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Kenya sees increase in value of exports despite COVID-19
According to data from the National Institute of Statistics, the value of Kenyan exports in the first eight months of 2020 increased by $183.9 million to $3.89 billion compared to the same period last year. Alex Owiti, Communication Consultant joins CNBC Africa for more.
Mon, 19 Oct 2020 10:11:27 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The positive trend in Kenya's exports is attributed to the implementation of sanitary protocols by the East Africa Business Council, which has facilitated smoother export procedures and boosted the export of key products like tea, coffee, nuts, and fresh vegetables.
- Despite the growth in exports, Kenya is facing a widening trade deficit due to COVID-19 restrictions on global trade, particularly in travel and cargo transportation.
- The government needs to focus on strategic measures to sustain and enhance the export sector, especially in light of upcoming free trade agreements and the potential impact on the local economy.
Kenya's export sector has shown promising growth in the face of the challenges posed by the COVID-19 pandemic. According to data from the National Institute of Statistics, the value of Kenyan exports in the first eight months of 2020 increased by $183.9 million to $3.89 billion compared to the same period last year. This increase can be attributed to several factors, including the implementation of sanitary protocols by the East Africa Business Council, which has facilitated smoother export procedures, particularly with neighboring countries like Uganda. These measures have helped minimize restrictions and delays, especially in ensuring the quality of perishable goods. As a result, Kenya's exports of tea, coffee, nuts, and fresh vegetables have seen a significant boost.
Despite the positive trend in exports, Kenya is still grappling with a growing trade deficit due to the impact of COVID-19 on global trade. The restrictions on travel and cargo transportation imposed by various countries, especially in Europe and the UK, have contributed to the widening trade deficit. However, there is optimism that as international trade gradually recovers, the deficit may stabilize over time.
Experts believe that Kenya's export sector has immense potential for further growth. With the Agua agreement providing access to over 1,000 items for export to the US market, there is a significant opportunity for expansion. However, challenges such as limited capacity to meet demand and the potential negative impact of upcoming free trade agreements on the local economy need to be carefully considered. It is essential for the government to implement strategic measures to sustain and enhance the export sector, especially in key products like vegetables, coffee, and tea.
Furthermore, the recent decline in Kenya's year-on-year inflation rate by 4.2% can be attributed to favorable weather conditions that have supported increased food production. The improved agricultural output has contributed to lower food commodity prices, leading to a reduction in inflationary pressures. Despite the ongoing effects of the pandemic, the economy has shown resilience in managing inflation levels.
In conclusion, Kenya's export sector's growth amid the challenges of COVID-19 underscores the country's resilience and potential for economic recovery. With strategic measures and a focus on enhancing export capabilities, Kenya can further strengthen its position in the global market and navigate through the uncertainties of the post-pandemic era.
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