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Newsunplug Kenya > Blog > Business > In May, exports reached Ksh95 billion despite a decline in volume.
Business

In May, exports reached Ksh95 billion despite a decline in volume.

Ivy Irungu
Last updated: July 22, 2024 10:20 am
Ivy Irungu 10 months ago
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Kenya’s total export value rose from Sh92.9 billion in April 2024 to Sh94.5 billion in May 2024, according to new data from the Kenya National Bureau of Statistics (KNBS). This increase occurred despite a decline in the export volumes of key commodities such as coffee, tea, cut flowers, and vegetables.

Specifically, coffee exports fell from 5,400 metric tonnes in April to 4,700 metric tonnes in May, with their value decreasing from Sh3.9 billion to Sh3.6 billion over the same period.

“The tea exports have also experienced a decline as their volumes dropped from 56.3 thousand metric tonnes in April 2024 to 51.6 thousand metric tonnes in May 2024, with a corresponding decline in their value from Sh17.3 billion to Sh15.6 billion,” the report stated.

In the horticulture sector, Kenya experienced a decline in both vegetable and cut flower exports. Vegetable exports fell to 14,600 metric tonnes in March from 16,200 metric tonnes in February 2024, with their value decreasing to Sh2.8 billion from Sh3.6 billion.

Similarly, cut flower exports dropped to 8,700 metric tonnes from 16,100 metric tonnes, with their value halving from Sh13.3 billion in February to Sh6.1 billion in March.

In May 2024, Uganda and Pakistan emerged as Kenya’s primary export destinations, with export values of Sh10.6 billion and Sh6.7 billion, respectively. Despite the declines in specific sectors, food and beverage exports remained the largest category, comprising 44.2% of the total exports.

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The total trade value decreased from Sh329.1 billion in April 2024 to Sh307.1 billion in May 2024. Imports also declined, falling from Sh236.2 billion in April to Sh212.6 billion in May 2024.

In contrast, tea exports saw an increase in volume from 48,299 metric tonnes to 51,575 metric tonnes between April and May of the previous year, although the value dropped from Sh16.1 billion to Sh15.6 billion. The Tea Board of Kenya reported that tea exports rose to 155.8 million kg in the first quarter of 2024, up from 131.1 million kg in the same period in 2023.

In May of the previous year, Kenya’s coffee exports were valued at Sh4.7 billion for 6,359 metric tonnes. This year, both the export value and volume fell to Sh3.6 billion and 4,732 metric tonnes, respectively.

Cut flower exports also saw a decrease in value from Sh8.5 billion in May 2023 to Sh6 billion in May 2024, with the volume dropping from 14,728 metric tonnes to 8,724 metric tonnes. The decline in cut flower exports could be attributed to intense competition in the European Union market, particularly from Ecuador and Colombia.

Conversely, vegetable exports experienced an increase, with their value rising from Sh2.7 billion in May 2023 to Sh2.8 billion in May 2024, and the volume growing from 9,955 metric tonnes to 14,646 metric tonnes. The increase in vegetable exports is notable despite logistical constraints, market access issues, and climate change impacts.

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The decline in coffee and cut flower exports and the challenges faced by other sectors can be linked to Kenya’s dependence on a limited range of export products. This reliance has led to a loss of market share in the European Union, as highlighted by the World Bank’s Economic Update on Kenya 2023.

“Exports offered to the EU have stagnated on the same products year-on-year, including flowers, coffee, tea, avocados, and green beans, for more than two decades,” the World Bank Economic Update reported.

Kenya’s total export value increased from Sh92.9 billion in April 2024 to Sh94.5 billion in May 2024, despite a decline in exports of coffee, tea, cut flowers, and vegetables, says new data by the Kenya National Bureau of Statistics (KNBS).

The economic indicator reports show that coffee exports decreased from 5,400 metric tonnes in April 2024 to 4,700 metric tonnes in May 2024, with their value dropping from Sh3.9 billion to Sh3.6 billion during the same period.

“The tea exports have also experienced a decline as their volumes dropped from 56.3 thousand metric tonnes in April 2024 to 51.6 thousand metric tonnes in May 2024, with a corresponding decline in their value from Sh17.3 billion to Sh15.6 billion,” the report stated.

In the horticulture sector, Kenya experienced declines in the exports of vegetables and cut flowers. The volume of vegetable exports fell to 14,600 metric tonnes in March 2024, down from 16,200 metric tonnes in February 2024. Similarly, cut flower exports dropped to 8,700 metric tonnes from 16,100 metric tonnes during the same period.

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The value of vegetable exports decreased from Sh3.6 billion in February to Sh2.8 billion in March 2024, while the value of cut flower exports halved from Sh13.3 billion to Sh6.1 billion.

In May 2024, Uganda and Pakistan emerged as Kenya’s primary export destinations, with values of Sh10.6 billion and Sh6.7 billion, respectively. Despite the overall decline, food and beverage exports remained the largest category, accounting for 44.2% of the total.

The total trade value declined from Sh329.1 billion in April 2024 to Sh307.1 billion in May 2024. Imports also saw a drop, with the total import value decreasing from Sh236.2 billion in April to Sh212.6 billion in May 2024.

Tea exports, on the other hand, saw a decrease in value from Sh16.1 billion in May of the previous year to Sh15.6 billion this year. Despite this drop, the volume of tea exports increased from 48,299 metric tonnes to 51,575 metric tonnes.

The Tea Board of Kenya reported that tea exports rose to 155.8 million kg in the first quarter of 2024, up from 131.1 million kg in the same period in 2023.

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