This archive report was first published on 11 June 2020.
Kenya's economy has been severely impacted by the COVID-19 pandemic, with exports to its three leading markets in the East African Community (EAC) falling by Sh3.51 billion in April.
According to the Central Bank of Kenya (CBK), earnings from goods sold to Uganda, Tanzania, and Rwanda amounted to Sh5.61 billion in April, a drop of 38.47 percent compared with similar period in 2019.
The decline in exports is attributed to delays in cross-border trade, which have been caused by the COVID-19 containment measures implemented by the EAC member states.
Truck drivers have been subjected to COVID-19 testing at the point of departure, resulting in delays that have taken an average of 48 hours.
However, a deal reached by Kenya, Uganda, and Rwanda in early May has eased the situation, with truck drivers now being tested at the point of departure, reducing the delays at border points.
Despite this, the provisional CBK data shows that Kenyan traders trucked goods worth Sh2.03 billion to Tanzania in April, a 34.16 percent drop compared to a similar period in 2019.
Exports to Uganda contracted 39.16 percent to Sh2.69 billion, while Rwanda's orders plunged the sharpest at 44.82 percent to Sh890 million.
During the first quarter of 2020, exports to the three countries were estimated at Sh32.91 billion, a growth of 18.15 percent over similar quarter last year.
According to EAC and Regional Development Cabinet Secretary Adan Mohamed, trade volumes are expected to fall by at least 30 percent this year due to the current delays at the border points.
“Trucks that normally take three days to move from Mombasa to Kampala now take eight days. If this continues for up to six months, this will affect the demand side as well,” Mohamed said in an interview last month.
