Kenya’s merchandise trade recorded a notable growth in 2024, with the total trade volume reaching Sh 3,818.6 billion, representing a 5.5% increase compared to 2023.
The rise was mainly attributed to strong export performance and moderate growth in imports, contributing to a slight narrowing of the country’s trade deficit.
Total export earnings increased significantly by 10.4%, from Sh 1,007.9 billion in 2023 to Sh 1,112.3 billion in 2024.
This growth was largely driven by a surge in re-exports, which soared by 77.3% to reach Sh 180.2 billion, boosted primarily by higher re-exports of kerosene-type jet fuel.
On the import side, expenditure rose by 3.6%, from Sh 2,612.0 billion in 2023 to Sh 2,706.3 billion in 2024.
Key drivers of this increase included higher imports of: Aircraft and associated equipment (up 98.1%), Telecommunication equipment and parts (up 30.1%), Rice (up 23.9%), Plastics (up 14.3%), Industrial machinery (up 8.0%).
As export growth outpaced that of imports, Kenya’s trade deficit improved slightly, narrowing from Sh 1,604.1 billion in 2023 to Sh 1,594.0 billion in 2024.
The export-to-import cover ratio also improved, rising from 38.6% to 41.1%, signaling stronger export performance relative to imports.
The overall improvement in merchandise trade contributed to a substantial narrowing of the Current Account deficit, which dropped from Sh 382.7 billion in 2023 to Sh 208.9 billion in 2024.
This was further supported by increased inflows from services, diaspora remittances, and interest receipts.
Additionally, foreign exchange reserves grew significantly, with Reserve Assets increasing from Sh 1,145.4 billion at the end of 2023 to Sh 1,303.5 billion by the end of 2024, largely due to higher multilateral disbursements.
Kenya’s external financial position also improved.
The stock of external financial assets rose to Sh 4,122.4 billion, while external liabilities declined by 9.2% to Sh 12,045.7 billion.
As a result, the country’s net borrowing position improved by 13.7%, standing at Sh 7,923.3 billion at the end of 2024.
These developments reflect a strengthening in Kenya’s external trade and financial positions, with a positive outlook for continued stabilization of the current account and trade balance.
