KENYA—Latest data from the Kenya National Bureau of Statistics (KNBS) has revealed that the Democratic Republic of Congo (DRC) was Kenya’s fastest-growing export market in Q1 2024, despite diplomatic relations issues.
According to KNBS, exports to DRC increased by more than 56.04% to KES 8.62 billion (US$67.7 million) in Q1 2024, the biggest year-on-year (YoY) Growth in the past ten years.
The data also shows quarterly exports to the DRC have remained elevated above the KES 7 billion mark (US$58.7 million) since July 2023, fueled mostly by a significant increase in wheat imports thanks to a reduction in import duty to countries in the East African Community (EAC) from 35% to 10%.
This reduction in import duty caused a ripple reduction in the cost of wheat exported to the DRC because it applied to goods brought into partner states from a foreign country. The current import duty is expected to be maintained in the current financial year.
KNBS data shows Kenyan traders moved goods worth KES 23.88 billion (US$184.6 million) in the first nine months of the 2023/2024 financial year since the duty reduction took effect, a 57.48% increase from the KES 15.16 billion (US$117.5 million),
Although DRC’s steep growth as a preferred destination for Kenyan goods, it still derailed other EAC countries except for Burundi. The proportion of DRC’s share of Kenya’s export goods increased to 10.74%, an increase from 7.96% in the same quarter last year.
Uganda remained Kenya’s largest export partner in the EAC, despite growing by 7.39% to KES 33.34 billion (US$258.5 million) in Q1 2024.
The significant increase in exported goods to the DRC reflects Kenya’s continued interest in the Central African nation, which formally entered the EAC in 2022 after making a formal application in 2019. Since DRC’s acceptance into the block, trade has significantly increased.
According to OEC, Kenya’s exports to DRC increased from KES 19.35 billion (US$151 million) in 2022 to KES 24.38 billion (US$189 million) in 2023.
Despite ongoing diplomatic tensions, Kenyan businesses have expressed continued interest in trading with the DRC.
Mucai Kunyiha, Chairman of the Kenya Association of Manufacturers (KAM) said, “With a population of 90 million, DRC offers Kenyan manufacturers a larger market for their products. Its rich appetite for agricultural produce shall enable local manufacturers expand their volume of exports.”
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