Trade Principal Secretary Chris Kiptoo. [photo/businessdailyafrica.com]Kenya is reviewing trade agreements with its partners as part of a strategy to expand her share in the international market by more than Sh100 billion annually.
Trade Principal Secretary Chris Kiptoo has said the revision of the trade contracts will enable the country to understand the market requirements of various global segments.
“We target to expand the export market from its current size today by more than 20 percent annually to more segments with a view to reducing the import bills the country is grappling with. We are spending more than what we are earning as a country,” he said.
Kiptoo said that government is consulting all trade actors including producers, marketing agents, analysts, trade associations with a view to developing a national export promotion strategy to address gaps curtailing increasing exports to various markets in the world.
According to the Economic Survey 2017, Kenya exports to various destinations around the world slightly declined to Sh578.1 billion last year from Sh581 billion in 2015, accounting for a 12.1 percent drop due to the value of re-exports. While imports, on the other hand, declined to Sh1.4 trillion from Sh1.5 trillion in 2015.
Africa remained the leading destination of Kenya’s exports, accounting for 40.6 percent of total exports while Asia provided more than half of the total imports into Kenya last year.
Addressing the media during a meeting to launch a one-day meeting to discuss an initial report on the National Export Development Strategy, Kiptoo explained that the government plans to change the whole tide and ensure the country has diversified her exports.
The strategy target seven sectors namely; Livestock and livestock products, agriculture, fisheries, manufacturing products, handicrafts, service sector, emerging sectors such oil and gas and cross-cutting issues, for example, export financing, trade facilitation and foreign market.
“Our desire is to first understand the export market requirements and then work backward to ensure whatever is produced adheres to the laid down conditions. This is one of the gaps we expect to address through the strategy,” he said. Some of the export destinations include UK, Netherlands, Germany, Belgium, Italy, East African Community and the US under African Opportunity Growth Act.