Kenya’s coffee, tea and flower exports face sharp decline, KNBS report says

Kenya’s major export sectors are grappling with a significant slowdown as new figures from the Kenya National Bureau of Statistics (KNBS) reveal alarming declines in the country’s exports of coffee, tea and cut flowers.

The latest Leading Economic Indicators report, released on Friday 19 July, exposes the fragile state of these industries and highlights a worrying trend for Kenya’s economy.

The May 2024 report reveals a marked decline in export volumes of coffee, tea and cut flowers. Coffee exports fell from 5.4 thousand metric tons in April 2024 to 4.7 thousand metric tons in May 2024, a reduction reflected in a drop in value from 3.9 billion Kenyan shillings to 3.6 billion Kenyan shillings.

Tea exports suffered a similar fate, with quantities falling from 56.3 thousand metric tons to 51.6 thousand metric tons and values ​​declining from 17.3 billion shillings to 15.6 billion shillings.

In a worrying trend, the once-thriving cut flower sector also saw its exports plummet. The volume of flowers exported plummeted from 16.1 thousand metric tons in February 2024 to 8.7 thousand metric tons in March 2024, accompanied by a staggering drop in value from 13.3 billion shillings to 6.1 billion shillings.

This decline is compounded by a broader decline in trade volumes. Kenya’s total trade value fell from Ksh329.1 billion in April to Ksh307.1 billion in May, although the total value of exports registered a slight increase from Ksh92.9 billion to Ksh94.5 billion.

In contrast, the total value of imports also saw a decline, from Sh236.2 billion to Sh212.6 billion during the same period.

Despite the challenges facing its traditional export sectors, Kenya’s economy is showing mixed signals elsewhere.

Fruit exports saw a significant increase, doubling from 5,000 metric tons in February to 12,300 metric tons in March, and their value rose from Ksh1 billion to Ksh2 billion. In addition, the volume of sugarcane deliveries increased by 10.4%, reflecting a notable recovery in this sector.

Prices of staple foods in the retail market have also declined. The price of maize fell from Ksh54.4 per kilogram in April to Ksh52.3 in May, while that of beans fell from Ksh154.1 to Ksh149.2 per kilogram during the same period. These reductions could provide some relief to consumers amid the overall economic turmoil.

The report highlights Uganda and Pakistan as the top destinations for Kenya’s exports in May, with export values ​​of Sh10.6 billion and Sh6.7 billion respectively. Meanwhile, China and the United Arab Emirates emerged as the top sources of imports, with values ​​of Sh47 billion and Sh36.9 billion.