Kenya plans to focus on the African continent to drive export growth.
Mr Jaswinder Bedi, Chairman of Export Promotion Council (EPC), said in Nairobi that Kenya has a competitive advantage in manufactured goods as compared to most other African countries.
“We see an opportunity to expand our export volumes by focusing on the sale of manufactured goods to the rest of Africa,’’ Bedi said.
Government data indicates that in 2018, approximately 40 per cent of Kenya’s exports went to other African markets.
“Most of the Kenyan exports to Africa are value-added goods while exports to the rest of the world are mostly raw materials,’’ he added.
Kenya is likely to reap enormous benefits once the African Continental Free Trade Area (AfCFTA) is fully operational and tariffs are removed, he said.
“At present, non-tariff barriers, in the form of product standards present a huge challenge to the expansion of Kenya’s outbound trade in Africa.’’
According to the EPC, poor transport infrastructure also hinders the growth of Kenyan exports to the rest of Africa.
“Merchandise from Kenya often becomes uncompetitive when transported to landlocked countries in the continent,’’ Bedi said.
Kenya’s export now accounts for eight per cent of its gross domestic product (GDP), against a target of 15 per cent.
He, however, said that the majority of Kenyan exports are agricultural products with little value addition.