Govt. concerned by declining trade in the region

The government has raised concern over Kenya’s declining share of trade within the East African Community (EAC).

Once hailed as the regional powerhouse, Kenya’s influence in the region has begun dropping with the government pointing towards the un-competitiveness of locally manufactured goods.

East African Affairs Principal Secretary Betty Maina said this was a pointer to the need to improve the competitiveness of local goods to be able to gain market access within the region.

“This has been so for a while with most of the countries in the region that has been relying on our manufactured products resorting to other markets,” Ms Maina said.

Data from the Kenya National Bureau of Statistics (KNBS) shows that exports to Uganda dropped by 30 percent in 2015 to Sh15.8 billion while exports to Tanzania stood at Sh7 billion.

Ms Maina said barriers and unnecessary restrictions have further hindered business within EAC with alternative markets such as India and China sneaking taking advantage to sell their wares.

“Could we have a more collaborative framework of all industries working across East Africa to open up the market and remove all these unnecessary restrictions because it does not benefit anyone,” she stressed.

The trade barriers have made easier for other nations to export goods to the region despite their local availability.

Major exports from Kenya include edible oil, fabrics, food, animal products, tobacco and cement, with the government relying on partner states and other African countries to absorb 40 percent of locally manufactured goods.

A World Bank report indicates that India and China are eating into Kenya’s export market.