With Kenya pushing for stronger bilateral ties with her key trading partners, China remains among the top business and development partners within the East African economic powerhouse.
It remained the single leading source of Kenya’s imports in 2021, into 2022 accounting for 20.5 per cent of total imports valued at Sh441.4 billion in 2021, the Economic Survey by the Kenya National Bureau of Statistics (KNBS) shows.
This was up from Sh361.3 billion the previous year.
“Increased imports of iron and steel; and assorted machinery and equipment resulted in the growth,” KNBS says in its report.
During the year, Europe accounted for 16.5 per cent of the total import bill with imports valued at Sh355.1 billion.
America accounted for 5.7 per cent of total imports valued at Sh123.7 billion.
Within this region, imports from the US rose from Sh56.3 billion in 2020 to Sh84.2 billion in 2021.
Total exports to China were valued at Sh21.9 billion in 2021 compared to Sh14.8 billion in 2020, representing a 48.1 per cent increase.
This was majorly attributable to an increase in domestic exports of titanium ores and concentration to this destination, proving China remains the leading trading partner with Kenya.
China-Kenya trade is poised for further growth as international freight costs drop further this year.
Freight costs in the shipping industry have fallen by up to 50 per cent in key trading routes, shippers have reported, setting the ground for cheaper imports into Kenya and the region.
This is after more than one year of high prices, which spiked in 2021 when global trade witnessed a vessel and container shortage in Africa and other low-volume import-export regions.
After a slowdown at the height of the Covid-19 pandemic, in 2020, the following year saw a resumption of trade between China, Europe and the United States–the world's largest producing and consuming economies.
High demand for vessels in the markets slowed down shipping lines’ activities in some regions, among them East Africa.
During the period, international freight charges went up by between 20–25 per cent, with shipping a container to Mombasa then costing up to $12,000 (Sh1.4 million).
This eased to an average $7,000 (Sh869,344) last year as supply to the markets increased.
According to the Shippers Council of Eastern Africa (SCEA), there has been an increase in vessel availability, which has corrected prices.
“China freight has fallen from a high of USD 7000 to almost half of between USD3500 and 3800,” SCEA chief executive Gilbert Langat told the Star on the telephone.
This is about Sh434, 672 and Sh 471, 929.
It comes as a relief to local manufacturers and traders who import raw materials and finished goods, and those in the export business.