Kenya: Five-year high export earning may emerge as economic rebound

The export earnings in Kenya for 10 months to October are expected to emerge as a rebound for economic growth in the second half of the country, according to a report by Business Daily.

The growth has been a continuous resilience against COVID-19 in the sector as per the data shown by the Central Bank of Kenya (CBK). It shows that a percent of 6.4 from Sh500.70 billion to Sh532.91 has been grown from that to the same period in 2019.

The growth in earnings has been attributed to better performance of the traditional exports such as coffee, tea and petroleum products. Coffee and tea receipts increased by 3.9 per cent and 17.2 per cent to Sh19.71 billion and 109.36 billion respectively over the period.

However, the receipts from products from horticulture have marginally dropped to Sh95.61 billion, 0.2 percent from the same time in 2019. Said, in a statement in a recent Monetary Policy Committee which reads, "respondents (flower firms) indicated that orders for flower exports over the next four months are strong, with a risk of disruptions from a tightening of Covid-19 containment measures in key markets". Presenting that earnings from fish exports noted a decline by 22 percent to Sh2.2 billion. However, with the gradual opening of markets in October, the exports improved to Sh49.32, by 1.6 percent, compared to September 2019.

It suggested that exports that are associated with agro-industries are expected to aid economic rebound in the second half of 2020.

Though with the resurgence of COVID-19, the containment measures could dampen economic growths in advanced economies as suggested by reports.