Cheaper ag goods from China hurting Kenyan exports
The World Bank, which had earlier warned of the threat due to imports from the Asian economic giant, now says Kenya's trade performance is fast declining due to an influx of goods from China into Uganda and Tanzania who are major export destinations for the country.
The data shows that exports contracted by an estimated 23.3 per cent in 2016 despite the region's relative resilience, underlined by a growth in the East Africa Community (EAC) intraregional business. Uganda, which is Kenya's largest EAC market recorded significant declines in vegetable imports as they fell by 11.6 percent.
In both Tanzania and Uganda, the share of China's exports has increased from some 45 per cent to 60 per cent over the past decade. This has not only driven down market shares of Kenya's exports, but also that of other countries," the global lender said at its latest economic update.
source: allafrica.com
