This archive report was first published on 3 January 2020.
As Kenyans celebrated the festive season, a drop in global oil prices brought some cheer to the country's economy, which had been struggling to grow.
Export earnings in the third quarter of 2019 dropped to Sh147.7 billion compared to Sh152.1 billion in the same period in 2018. However, a 12 per cent drop in global oil prices helped offset the loss, propping up the Shilling during this period.
According to the Kenya National Bureau of Statistics, the volume of trade declined compared to the same quarter of 2018, with a 3.2 per cent decrease in total exports to Sh145.9 billion and a 4.9 per cent decline in imports to Sh410.5 billion.
Despite the decline in imports, the value of imports during the period under review declined by 5.3 per cent to Sh147.5 billion compared to Sh152.1 billion in the same period in 2018. However, imports of processed food and beverages more than doubled to Sh9.7 billion in the third quarter of 2019 compared to the same quarter in 2018.
As a result, Kenyans who had been grappling with a tough environment were spared further financial strain. The economy expanded by 5.1 per cent in the third quarter, a significant improvement from the 6 per cent growth in the same quarter of 2018.
Kenya paid Sh67.7 billion for petroleum imports, a significant drop-down compared to Sh76.7 billion in the same period in 2018. The decline in petroleum prices also led to a slight reprieve at the pump, with petrol, diesel, and kerosene declining by Sh1.09, Sh2.83, and Sh1.75 respectively in Nairobi from mid-December 2019.
