Kenya --Trade
Kenya
typically
has a substantial
trade deficit
with countries
outside
Africa.
Its
ratio
of imports
and exports
had fluctuated
widely
but an
overall
pattern
decline
is unmistakable.
By the
early
1980s,
export
revenues
amounted
to less
than
60% of
import
costs.
The deficit
on current
account
is, however,
much
lower
because
of the
favorable
balance
in the
export
of services
and net
transfers,
which
went
from
$173.8
million
in 1985
to 68.5
million
in 1986,
to 520.3
million
in 1990,
$214.8
million
in 1991,
and $97.7
million
in 1992,
with
a positive
balance
in 1993
at $153
million,
and a
comparable figure
for 1994.
Export
revenues
derive
from
agricultural
crops
like
coffee,
tea,
sisal,
pyrethrum,
sugar-cane,
and horticultural
products.
Many
of these
products
have
been
subject
to fluctuations
in production
and price
in the
world market.
Many
Kenyan goods
are exported
to European
Union member
countries,
especially
the UK.
But regional
trade is
likely to
increase
due to the
restitution
of a tri-national
commission
with Uganda
and Tanzania.
Kenya has
also joined
COMESA,
the Common
Market for
Eastern
and Southern
Africa,
and hopes
to reduce
tariffs
on the sale
of its exports
abroad The
government
hhas made
efforts
to diversifyits
economic
base by
stimulating
production
of nontraditional
exports,
in an attempt
to reduce
the dependence
on the fluctuating
world prices
that has
hampered
profits
on its main
agricultural
commodities.
These efforts
have encouraged
production
of new kinds
of horticultural
produce,
canned pineapple
products,
handicrafts,
clothing,
leather,
cement,
soda ash,
and fluorspar.
The government
is also
encouraging
efforts
to export
manufactured
goods including
textiles,
paper, and
vehicles.
Most of
Kenya's
imports
are commodities
produced
in the UK,
Japan, and
Germany.
Crude oil
is imported
from the
United Arab
Emirates,
Iran and
Saudi Arabia.
Source:
The Economist
Intelligence
Unit, 1998,
Country
Profile.
Kenya, The
Unit: London.