(Nairobi) – In 2023, Kenya spent US$ 3.48 billion on importing goods and services from China, making it the country’s largest source of imports. However, this figure is still lower than the record US$ 4.22 billion in trade between the two nations in 2021. According to a report commissioned by the UK government, the value of imports from China in 2023 stood at US$ 3.275 billion.
This continued trade dominance comes amid a broader landscape of Kenya’s growing international trade. The United Arab Emirates (UAE), India, Saudi Arabia, Malaysia, the United States, Japan, Russia, South Africa, and Egypt were also noted as significant sources of Kenya’s imports. China has maintained its position as Kenya’s top trading partner for several years, with trade figures showing steady fluctuations. In 2019, the total trade with China amounted to US$ 3.7 billion, dipping slightly to US$ 3.53 billion in 2020, before reaching the 2021 peak of US$ 4.22 billion.
Tea and horticultural products remain Kenya’s dominant exports, along with other goods such as apparel, iron and steel, coffee, edible oils, cement, plastics, and pharmaceuticals. However, despite the large volume of imports from China, Kenya’s exports to China have been relatively smaller, with other regional trading partners like Uganda seeing consistent growth.
Trade with Uganda increased steadily from US$ 960 million in 2019 to US$ 1.18 billion in 2023, highlighting the importance of regional trade in Kenya’s economic activities. Other countries showing growth in trade with Kenya include Malaysia, the Netherlands, Tanzania, and Japan. Kenya’s exports to the Netherlands rose from about US$ 470 million in 2019 to US$ 544 million in 2023, while exports to the United States increased from US$ 508 million in 2019 to over US$ 618 million in 2023.
Kenya’s imports in 2023 were dominated by petroleum products, which accounted for 23% of the import bill. Industrial machinery, iron and steel, and edible oils were also major import categories, contributing 7%, 6%, and 5%, respectively, of the total import value.
The “Overview of Kenya’s Trade Landscape, 2023” report also highlighted the growing trade deficit, which widened from KSh 1.375 trillion (US$ 12.6 billion) in 2021 to KSh 1.617 trillion (US$ 13.72 billion) in 2022. This increase was driven by a 30.9% rise in imports, outpacing a more modest growth in exports. The report emphasizes the importance of addressing the trade deficit by promoting local production, particularly in sectors with high import dependency such as energy, pharmaceuticals, and automotive industries.
“Reducing the trade deficit is a critical challenge. Increasing local production in key sectors will help reduce reliance on imports, stabilize foreign exchange reserves, and foster a more self-sufficient economy,” the report stated.
Key recommendations for addressing these issues include value addition, sustainability in production, upskilling the workforce, improving infrastructure and supply chains, and investing in research and development. These steps are seen as essential for improving Kenya’s competitiveness on the global stage while reducing trade imbalances.
Key Import Statistics (2023)
| Country | Total Imports from China | Percentage of Total Imports | Main Categories |
|---|---|---|---|
| China | US$ 3.275 billion | Largest Source of Imports | Petroleum products (23%), Machinery (7%), Iron & Steel (6%), Edible Oils (5%) |