Kenya Imports from South Africa Drop to 12-Year Low

Provisional trade data from the Kenya Revenue Authority (KRA) shows imports from South Africa to Kenya slid to a 12-year low of Sh47.52 billion, a 35.81 percent contraction. The Kenya National Bureau of Statistics (KNBS) attributes the drop to reduced orders for iron and steel products, which make up half of the purchases, amid a slowdown in public expenditure on infrastructure.

Kenya slowed down expenditure on infrastructure projects last year as the revenue was instead concentrated on projects aimed at alleviating the impact the pandemic had on the country’s economy. Development expenditure on infrastructure amounted to Sh20.22 billion, as compared to Sh50.74 billion amounted in the prior fiscal year, showing a 60.15 percent drop.

South Africa is Kenya’s largest source market in Africa and accounts for about a third of the imports on average in recent years. Kenya’s imports from the rest of African countries accounted for 10.53 percent of the estimated Sh1.64 trillion total order book in 2020. This is a reduction from 12.71 percent a year earlier.

However, earnings from exports to Africa rose 9.07 percent to Sh243.68 billion, making up 38 percent of Sh641.21 billion total exports.

By Fatiha Shabir