Kenya’s fastest-growing EAC export market is now the DRC

The DRC’s share of Kenya’s exports to the regional bloc, however, hit double-digit levels in the review quarter, rising to 10.74 percent from 7.96 percent.

Uganda remained the biggest buyer of Kenya’s goods in the region despite growing a modest 7.39 percent to Ksh33.34 billion ($258 billion), largely on increased orders of “carboys, bottles, flasks, and similar articles”, according to KNBS. This is lower than the 49.62 percent jump a year earlier to Ksh31.05 billion ($240 million) from Ksh20.75 billion ($160 million) in the first quarter of 2022.

Uganda’s share of exports to the EAC bloc also shrank to 41.56 percent from 44.77 percent previously.

Nairobi and Kampala also experienced renewed trade disputes after Kenyan authorities restricted the issuance of import permits for goods such as eggs, sugar, and milk powder from Uganda in protectionist policies aimed at shielding local producers.

“We have agreed that trade between the two countries is unimpeded either by tariff or non-tariff barriers or arbitrary levies,” Dr Ruto said on May 16 after he hosted his Ugandan counterpart, Yoweri Museveni, for a two-day State visit.

“We have agreed that the common principle will be the full implementation of the EAC customs and other infrastructure that support trade between East African countries. Therefore, all the issues around rice, juice, furniture, eggs, chicken, and sugar are now resolved.”

The seven-member EAC trading bloc has continued to battle on-and-off trade tiffs, slowing down growth in intra-regional trade despite the region being the most integrated in Africa.

This is despite the EAC Customs Union Protocol, the bloc’s first integration breakthrough which came into force in 2005, allowing the free movement of goods, services, capital, and labour within the bloc.

The KNBS data further shows that imports by Tanzania grew 18.01 percent to Ksh16.74 billion ($129 million)  in the review period, a slower pace than South Sudan’s which rose by a quarter (25.69 percent) to Ksh9.27 billion ($71 million).

South Sudan’s share of Kenya’s exports to EAC rose marginally to 11.56 percent from 10.64 percent previously, with growth largely being supported by household or laundry-type washing machines.

Tanzania’s share was largely flat, with re-exports of kerosene-type jet fuel a notable driver.

Overall, Kenya sold goods worth Ksh80.23 billion ($62 million)  to EAC countries in the three months, a 15.69 percent growth over Ksh69.35 billion ($53 million) a year earlier.