Kenya imported goods and services worth $3.481 billion from China in 2023, making it the country’s largest trading partner. This figure is lower than the 2021 peak of $4.22 billion, according to the ‘Overview of Kenya’s Trade Landscape, 2023’ report commissioned by the UK government.
The report lists the UAE, India, Saudi Arabia, Malaysia, the United States, Japan, Russia, South Africa, and Egypt among Kenya’s top import sources. Petroleum products accounted for 23% of imports in 2023, followed by industrial machinery (7%), iron and steel (6%), and edible oil (5%).
Kenya-China Trade Overview
Total trade between Kenya and China in 2023 was $3.481 billion, with imports at $3.275 billion. Kenya’s exports to China include tea, horticulture, apparel, iron and steel, coffee, edible oils, cement, plastics, rubbers, and pharmaceuticals.
“China consistently remained Kenya’s largest trading partner over this period,” the report notes, citing trade figures of $3.7 billion in 2019, $3.53 billion in 2020, and $4.22 billion in 2021.
Trade Growth with Other Partners
Kenya’s trade with Uganda rose from $960 million in 2019 to $1.18 billion in 2023. Exports to the Netherlands grew from $470 million in 2019 to $544 million in 2023, while exports to the US increased from $508 million in 2019 to $618 million.
Rising Trade Deficit
The report highlights a widening trade deficit, which grew from Ksh 1,375.7 billion ($12.6 billion) in 2021 to Ksh 1,617.6 billion ($13.72 billion) in 2022 due to a 30.9% rise in imports compared to modest export growth.
“Addressing the trade deficit is a pressing challenge,” the report states. It recommends boosting local production in key import sectors such as energy, pharmaceuticals, and automotive industries to reduce import reliance and improve economic stability.
Path to Economic Stability
The report suggests focusing on value addition, sustainability, workforce upskilling, infrastructure, and research and development to enhance Kenya’s trade competitiveness. Strengthening local production and diversifying exports are seen as crucial steps to stabilise foreign exchange reserves and build a self-reliant economy.
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