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Kenyan items lose out to Indian, PRC goods in EAC: study

Nov '19
Pic: Shutterstock
Pic: Shutterstock
Kenya is quickly losing its position as the East African Community (EAC) exports powerhouse, according to a study conducted by the EAC Secretariat and TradeMark East Africa. Kenyan products are increasingly finding it tough to compete with cheaper imports from China and India and those produced by regional rivals, shrinking Kenya’s share of exports, it said.

Increase in counterfeits, non-tariff barriers, lack of product diversification and high production cost have also rendered Kenyan products less competitive in the market, Kenyan media reported citing the study.

The study shows Kenya’s exports to Uganda, Tanzania, Rwanda, Burundi and South Sudan are facing new threats posed by regional manufacturers who are now better equipped in the production of similar products.

The EAC Trade and Investment Report (2018) shows that Kenya’s exports to other EAC member states grew at a slower pace of 0.1 per cent in 2018 compared to a high of 6.1 per cent in 2017, largely due to increased efforts by regional peers in strengthening their manufacturing capacity to produce corresponding industrial products.

Kenya’s total exports to EAC partner states have been on a downward trend for the past five years falling 11 per cent to $1.27 billion in 2018 from a high of $1.43 billion in 2014.

Fibre2Fashion News Desk (DS)

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