This archive report was first published on 24 July 2019.
On July 24, 2019, the National Assembly of Kenya passed a motion urging the government to take immediate action to address the country's growing trade deficit.
The motion, presented by Sirisia Member of Parliament John Walukhe, highlighted the alarming increase in Kenya's trade deficit over the past few years, with the 2016/2017 financial year deficit estimated at Kshs. 1.1 trillion.
According to Walukhe, the trade deficit is largely attributed to the significant disparity between exports and imports, with exports worth Kshs. 594 billion compared to imports amounting to Kshs. 1.7 trillion.
The widening deficit has put pressure on the Kenyan shilling, forcing the Central Bank of Kenya to intervene and deplete foreign exchange reserves, while also contributing to the country's growing foreign debt.
Walukhe proposed several measures to address the issue, including providing incentives to potential investors and farmers, supporting local production through the promotion and protection of local industries, and implementing competitive export promotion strategies.
