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August 2, 2021

Kenyan exports to UK falls, ODI says

According to the latest study by Overseas Development Institute (ODI) exports to Britain have risen by 15 per cent as per last year.

Kenya’s share of UK market has declined by 13.2 per cent in the last five years as a result of increased competition from Rwanda, Ethiopia and Tanzania, a new study directs. The country’s value of fresh or chilled beans exported to UK fell by 12.2 per cent, Tanzania saw a 12.2 per cent rise as Rwanda surged by 20.6 per cent.

Kenya lost out on all its top three exports to the same destination during that period. The country has lost its competitiveness to other nations and that has to be remedied by upping its standards, improving marketing and branding of its products as well as differentiating. Kenya’s exports to Britain have moved from Sh50.3 billion in 2009 to Sh37.6 billion in 2017.

Lack of modification has condensed Kenya’s export attractiveness and given rise to substantial competition from other African states such as Rwanda, Ethiopia, Tanzania and Ivory Coast, all progressively eating into Kenya’s market share in the UK. Additionally, Kenya has failed to conform with the European Union EU extreme residue limit regulations in exports such as beans, neighboring countries have taken advantage of on it to gain share.

Increased export competition from Rwanda, Ethiopia and Tanzania to the UK has significantly reduced Kenya’s export to the country by almost half in the last one decade. A focus on how to improve market access, investing in trade-related infrastructure and strengthening domestic policies in relation to the development of economic zones will improve Kenya’s investment climate and export performance.

Kenya exports horticultural products, black tea and fresh roses which are the main foreign exchange earners. The rising competition means Kenya must improve level of marketing its existing products or diversify.



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