The value of Kenya’s exports to the United States grew 5.87 percent in the first three months of the year, bucking a trend where earnings from top destinations fell largely on the strengthening of the shilling against major international currencies.
Domestic exports to the US earned traders Sh18.88 billion in the review period compared with Sh17.84 billion in the same period of 2024, provisional data from State-run Kenya National Bureau of Statistics (KNBS) shows.
This came amidst anxiety surrounding the renewal of the tax and quota-free Growth and Opportunity Act (Agoa) by President Donald Trump's administration.
The current Agoa deal, under which Kenya largely exports apparel and garment products, expires in September.
The increased export earnings from the US came in a period total value of domestic goods sold abroad dropped for the first time in six years, reflecting the impact of a stronger shilling against the US dollar — the principal reserve currency in international trade.
The shilling gained 13.55 percent year-on-year against the US currency in the first quarter, exchanging for 129.34 units per US dollar compared with 149.62 in the same period of 2024.
Appreciation in the value of the shilling this year means exporters earn less than last year, when the dollars are converted to the Kenyan currency.
The KNBS data indicate Kenya’s earnings from domestic exports contracted 7.26 percent to Sh275.46 billion in the review period compared with Sh297.03 billion in the same period of 2024.
The year-on-year drop is the first recorded by the KNBS since 2019 when income from domestic exports fell 2.99 percent to Sh156.87 billion.
The data shows export earnings from the UK — which largely buys fresh vegetables, fruits, cut flowers, tea, and coffee — dipped the most amongst the top six destinations.
Kenyan traders earned Sh16.31 billion from goods exported to the UK, a drop of 13.03 percent in the three months compared with Sh18.76 billion a year earlier.
It was followed by Pakistan, the biggest buyer of Kenya’s tea and the third largest destination, where domestic exporters earned Sh192.21 billion compared with Sh212.13 billion in the first quarter of 2024.
The value of exports to the Netherlands, largely cut flowers, retreated 6.90 percent to Sh195.92 billion, while Uganda’s were flat, falling a marginal 0.24 percent to Sh296.0 billion.
Most Kenyan traders export raw produce because of higher taxes slapped on semi-processed or processed products in destination markets like the 27-nation European Union trading bloc.
Exporters fear that value-added goods will attract tariffs, making Kenya’s largely agricultural produce less competitive in the global markets.
