Kenyan exports pick up on the back of non-traditional goods

August 16, 2023

(4 minutes read)

Kenya’s exports of goods and services were at US$12.8 billion in the year ending June as against US$11 billion in the previous year. The increase was mostly driven by non-traditional exports, in particular minerals and services receipts

According to the Bank of Tanzania (BoT) monthly economic review for July, the export of non-traditional goods recorded an annual growth of 4.2 percent largely driven by minerals, particularly gold, coal, and diamonds.

Coal exports increased to US$229 million in the year to June from US$ 57.6 million in the previous year, due to growing demand in the wake of supply shortages following the war in Ukraine. The exports of diamonds almost doubled to US$46.9 million from US$29.6 million in the year ending June last year largely due to price effects. As for gold exports, the increase was largely on account of volume effects.

Manufactured goods exports also recorded an annual growth of 6.1 percent to US$1.4 billion largely driven by fertilisers and cement. Exports of traditional goods slightly increased to US$752.3 million from US$737.8 million with the increase mostly due to exports of tobacco, cotton, and coffee.

Services receipts amounted to US$5.4 billion in the year ending June higher than US$3.9 billion in the period ending June last year driven by travel (tourism) and transportation receipts. On a monthly basis, services receipts were US$513.7 million in June this year compared with US$390.5 million in June last year.

The current account recorded a deficit of US$4.8 billion in the year ending June compared with US$3.4 billion in the year ending June 2022 driven by high import bills. It is anticipated that the current account balance will improve in the subsequent months due to declining pressure from commodity prices along with the increase in receipts from tourism-related activities, the bank statement said.