Kenya’s export earnings drop 9pc as Euro, UK Pound dip
REVENUE: A drop in the value of the Euro and Sterling Pound has hit Kenya’s exports to the European Union (EU) pushing revenues down by 9 per cent or Sh20 billion.
Britain’s Pound fell from highs of Sh140 to one pound to the current Sh127 to one pound hurting the earnings of Kenya’s exports to the UK. The Euro has equally depreciated against the dollar and the shilling to Sh117 currently.
The export value of the crop decreased to Sh26 billion in the reviewed period from Sh46 billion in the same time the previous year, according to data from Kenya National Bureau of Statistics (KNBS).
Kenya’s exports to the Euro area and the UK included horticulture, coffee and tea. “Horticulture receipts fell by 8.5 per cent due to a drop in earnings in the third quarter,” said Central Bank of Kenya (CBK) in its annual report for 2022.
“The share of exports to the United Kingdom and Netherlands decreased from 7.4 per cent and 8.5 per cent in the financial year 2020/21 to 5.8 per cent and 8.1 per cent, respectively,” the banking sector regulator said.
Kenya’s horticulture exports to Europe include flowers, macadamia, vegetables, avocados, pineapples, processed octopus, coffee, medicaments, fruits. Kenya’s imports from the Euro area also declined as the weaker currencies allowed Kenya to import at a lower exchange rate.
“Imports from the European Union declined to $2,086 million and accounted for 10.7 percent of total imports,” said CBK.
Avocados exported
Benjamin Tito, head of the horticulture directorate, said many avocados exported were not fully mature, resulting in poor value and significant rejection of the item on the global market, which would have increased revenues.
Flowers saw a Sh10.3 billion decline in revenue to Sh21.8 billion in the period under review, while fruits saw a Sh2 billion increase from Sh5.6 billion. Vegetable revenue decreased by Sh6.1 billion to Sh2.2 billion.
The majority of horticulture imports into the European Union are cut flowers, French beans, snow peas, and Asian vegetables, accounting for 45 per cent of the total.
Other export destinations for horticultural produce are the Netherlands, United Kingdom, Germany, Austria, Italy, France, Belgium, Middle East, and the Far East.
