This archive report was first published on 19 July 2019.
Kenya's economy has been facing significant challenges in recent years, with a trade deficit of Sh1 trillion being a major concern. The country's inability to produce goods for export has been a major contributor to this issue.
However, the recent launch of the Integrated National Export Development and Promotion strategy has brought new hope to the country's economy. The strategy focuses on manufacturing, agriculture, livestock, fisheries, oil and gas, and handicrafts, which are key sectors that can help Kenya bridge its trade gaps.
One of the key aspects of the strategy is the emphasis on digital infrastructure. By putting digital infrastructure at the centre of delivery, the plan aims to boost Kenyan exports and make them more competitive in the global market.
However, experts have pointed out that the policy is heavy on legacy sectors and light on export of services like ICT, technical skills, and niche tourism. Additionally, the cost of doing business in Kenya is still high, with energy and e-commerce costs being major barriers to competitiveness.
Despite these challenges, the Africa Continent Free Trade Area, which will be operational from July next year, presents a significant opportunity for Kenya to increase its exports and bridge its trade gaps. The country must move swiftly to exploit these opportunities and make the most of the new trade agreements.
