• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Economic diplomacy yields little fruit in Kenya-Asia trade disparity

samrack by samrack
July 2, 2018
in Africa, Business, Diaspora, Kenya, Kenya Diaspora News, News, Politics, U.S Diaspora
A A
0
Economic diplomacy yields little fruit in Kenya-Asia trade disparity
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn
Kenya Flower Council’s chief executive Clement Tulezi. FILE PHOTO | NMG

Economic diplomacy yields little fruit in Kenya-Asia trade disparity

Despite launching what was described as aggressive economic diplomacy a few years ago, Kenya’s balance of trade is still heavily skewed in favour of bilateral partners, especially the Asian nations.

While the country has been seeking to cultivate close business ties with countries such as China, India and the United Arab Emirates, trade with these countries is still immensely tilted against Kenya.

China, India, UAE, among other countries, exported goods valued at billions of shillings to Kenya in the first quarter of this year. However, what Kenya exported to these markets was worth a measly sum. One of the reasons experts have cited for this poor show is that Kenyan exports are largely raw materials that can only attract low prices.

China’s exports to Kenya during the period amounted to Sh117.9 billion, with the goods shipped being mainly raw materials and machinery for infrastructural projects. Others were mobile phones, electronics, clothes, among others.

As Kenya brings in products worth billions from China, what it exports to the Asian country does not feature among the top importers of any of the local goods.

This, despite recent top-notch engagement between Kenyan and Chinese government officials. With such unbalanced ties, Nairobi is missing out immensely, considering that Beijing is the second largest economy in the world after the United States.

Being such an economic giant globally, China holds a huge trade potential for Kenya that economists say needs to be exploited.

Kenya brought in goods worth Sh64.9 billion from India, but there is no mention of any meaningful Kenyan exports to the Asian nation, representing another missed opportunity.

Experts have always stated that Kenya should be having strong trade ties with India, taking into account the fact that there are more than one million Kenyan citizens of Indian origin that run manufacturing firms, among other businesses in the country.

The report, the Leading Economic Indicators (LEI), for the first quarter of 2018, says that UAE businesses earned Sh56.24 billion from Kenya, while local companies earned a paltry Sh7.9 billion from goods sent to the Arab nation. Saudi Arabia, which sells mainly oil products to Kenya, raked in Sh47 billion while receiving Kenyan goods of negligible value.

Japan is also largely a one-sided trade partner for Kenya. Tokyo mainly sells vehicles to Nairobi. Other products are industrial machinery, infrastructural building materials and electronic items. From these, Japan earned Sh29.9 billion in the first quarter of this year.

The LEI, prepared by the Kenya National Bureau of Statistics, also names South Africa as a major exporter of goods to Kenya at Sh22.9 billion but is not among the top 10 importers of Kenyan goods. Germany, locally known for its top-of-the range vehicles, earned Sh13.73 billion from goods sent to Kenya, and imported goods worth Sh4.73 billion from the country.

Economic analysts, however, say the trade prospects do not look entirely gloomy. For instance, several Chinese firms are setting up camp in Kenya to manufacture goods for the larger East African region. Orders of Kenyans goods by these countries have also been increasing, albeit slowly.

“To break into China market, Kenya must engage its highest office to intervene in having favourable trade terms. Our coffee and flowers attract a 4 per cent duty in China while Ethiopia’s products enter duty-free. Kenya Airways flies to China’s islands while Ethiopian Airlines flies to mainland China,” said Kenya Flower Council’s chief executive Clement Tulezi.

Flower firms are also getting more business from Japan, the third largest economy in the world. Mr Tulezi is optimistic regarding the Kenya-Japan trade balance, as several Kenyan flower companies are now reporting direct sales to Tokyo retail chains.

Kenya appears to be reaping from the 6th Tokyo International Conference on African Development (Ticad VI) held in August 2016 at Nairobi’s KICC that attracted Japanese multinationals as well as 35 African presidents.

Recently, Japan reported 54 Japanese-owned companies had opened subsidiaries in Nairobi, while a recent investment survey among Japanese companies indicated most Japanese billionaires favour Nairobi as an investment hub. Japanese companies in Kenya include Toyota Tsusho, Isuzu East Africa and paint maker Kansai Plascon.

But not all Kenya’s bilateral ties with developed nations are skewed against it. Kenya earns more from export to some of these countries than it pays for imports. Netherlands, UK and France imported goods of a higher value than what they exported to Kenya, shows the report.

Netherlands’ value of imports from Kenya, mainly flowers and horticultural products, at Sh17.8 billion, was higher than goods it exported to Kenya valued at Sh7.3 billion in the first quarter of this year.

UK companies imported mainly tea and coffee as well as flowers from Kenya worth Sh14.3 billion and exported goods worth Sh10 billion to Kenya while France bought goods worth Sh7.3 billion and its exports were Sh2.4 billion.

Source: Daily Nation

 

Tags: Economic diplomacy yields little fruit in Kenya-Asia trade disparity
Previous Post

Kenyan judge re-elected VP of Africa rights court

Next Post

Nicholas Biwott’s Canada-Based Daughter Turns Down Her Multi-Million Shilling Inheritance

Related Posts

DP Ruto picks Rigathi Gachagua as his running mate
Kenya

DP Ruto picks Rigathi Gachagua as his running mate

May 15, 2022
Muteshi Land Grabbing Case Haunts Ruto
Business

Muteshi Land Grabbing Case Haunts Ruto

May 13, 2022
Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance
Diaspora

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

May 13, 2022
Five Reasons Why Real Estate Increases in Value
Business

Five Reasons Why Real Estate Increases in Value

May 13, 2022
Kenya:9,484 children were defiled last year— Health ministry
Health

Kenya:9,484 children were defiled last year— Health ministry

May 13, 2022
Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia
Diaspora

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

May 12, 2022
Next Post
Nicholas Biwott’s Canada-Based Daughter Turns Down Her Multi-Million Shilling Inheritance

Nicholas Biwott's Canada-Based Daughter Turns Down Her Multi-Million Shilling Inheritance

Please login to join discussion
Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply.
ADVERTISEMENT
ADVERTISEMENT

Latest News

DP Ruto picks Rigathi Gachagua as his running mate

Muteshi Land Grabbing Case Haunts Ruto

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

Five Reasons Why Real Estate Increases in Value

Kenya:9,484 children were defiled last year— Health ministry

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

Kenyan Nurse Wins Sh29 Million Global Nursing Award in Dubai

Russia Questions US-Funded Biolab in Kenya

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

Canada Issues Travel Advisory to Its Citizens in Kenya

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

by samrack
May 11, 2022
0

GOVERNOR MUTUA'S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!   Governor Alfred Mutua’s...

You are free to use Nairobi expressway from next Saturday – Uhuru

You are free to use Nairobi expressway from next Saturday – Uhuru

by samrack
May 8, 2022
0

You are free to use Nairobi expressway from next Saturday - Uhuru Other than the ban on photography, skaters, pedestrians,...

  • About Us
  • Archives
  • SWG Registration

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 0.856 seconds. Stats plugin by www.blog.ca