- The ongoing Russia-Ukraine War is a major setback to Kenya’s exports to Russia estimated at nearly Ksh10 billion ($87.5 million) annually.
- Two way trade between Nairobi and Moscow, was around Ksh45 billion ($394 million) in 2020.
- In the wake of sanctions imposed on Russia by the US, UK and Europe, after its invasion of Ukraine, major container and shipping lines have been temporarily suspended.
The ongoing Russia-Ukraine War is a major setback to Kenya’s exports to Russia estimated at nearly Ksh10 billion ($87.5 million) annually. Two way trade between Nairobi and Moscow, was around Ksh45 billion ($394 million) in 2020. Kenya’s major exports to Russia are tea, flowers, coffee and fruits. In the wake of sanctions imposed on Russia by the US, UK and Europe, after its invasion of Ukraine, major container and shipping lines have been temporarily suspended.
Though the trade balance is largely in favour of Russia, the Russian market is largely seen as a growth frontier for Kenya’s sluggishly growing exports. Russia is the fifth-largest consumer of Kenya’s tea after Pakistan, Egypt, UK and UAE. The repercussion of the economic sanctions was felt at the Mombasa Tea Auction this week where buyers for the Russian market were absent.
Kenya is also not in a position to pay for imports and receive cash for exports from Russia as Russian banks have been exempted from SWIFT, the international payment system. The exclusion of Russian banks from SWIFT will halt exports like spices, nuts and vegetables to Russia.
https://trendsnafrica.com/russia-ukraine-war-may-affect-food-grain-supplies-to-africa/
