This archive report was first published on 12 October 2019.
Kenya's ambassador to Burundi, Ken Vitisia, revealed plans to set up warehouses in Kigali, Bujumbura, and Lumbubashi to drive more exports and counter competition from neighboring countries.
According to Vitisia, the warehouses will be established at a free trade zone in Gatumba, near the border with the Democratic Republic of Congo, which will provide Kenyan companies with easy access to the Burundi market and ultimately the DRC market.
Kenya currently controls six percent of the combined Rwanda and Burundi markets, worth $8 billion, but faces competition from neighboring Tanzania, Uganda, as well as countries like China, India, and Saudi Arabia.
Notably, Tanzania has already overtaken Kenya as the leading exporter to Burundi, where Kenyan brands are 16 percent more expensive than products from competing countries.
Kenya's exports to the DRC stood at Ksh15 billion ($130 million) in 2018, down from Ksh18.8 billion ($162.7 million) in 2017, according to data from the Kenya Export Promotion and Branding Agency (Keproba).
The main Kenyan exports to Rwanda and Burundi include iron sheets, steel, oils, perfumes, paints, paper, confectionery, and cigarettes.
Kenya's declining exports to the region have significant implications, including a drop in forex reserves, loss of job opportunities, and reduced tax revenues, as noted in the Keproba report.
Published on The EastAfrican on October 12, 2019.
