Kenya's Trade Deficit Falls Sharply in 2023 as Exports Rise and Import Demand Slows

Kenya's trade deficit dropped significantly by $726 million in the first 8 months of 2023 compared to 2022.

Lower import bills, especially for industrial supplies, petrol, and machinery, contributed to the improved trade balance.

Stronger exports, including tea and horticulture, also helped boost Kenya's trade outlook.

The manufacturing sector's growth slowed down and less public infrastructure spending reduced import demand.

Despite progress, Kenya still struggles with its trade imbalance due to reliance on lower-priced raw agricultural exports.