This archive report was first published on 8 June 2020.
Kenya's trade deficit has taken a significant hit, narrowing by Sh33.6 billion in the four months of 2020 compared to a similar period in 2019.
According to data from the Central Bank of Kenya, the country's import bill declined by Sh17.4 billion to Sh556.2 billion in the four months to April 2020, while export earnings rose by Sh16.2 billion to hit Sh221.9 billion in the same period.
The decline in the import bill can be attributed to lower fuel costs, which have been influenced by the steep decline in global crude prices due to the Covid-19 restrictions in many economies.
As a result, the price of a litre of petrol and diesel in Nairobi had come down to Sh83.33 and Sh78.37 in the May review, from Sh109.50 and Sh101.78 respectively at the beginning of the year.
Disruptions in global supply chains due to the coronavirus have also impeded trade between countries, with locally hundreds of thousands of jobs lost following the restrictions in economic activity to control the spread of the virus.
On the export side, while volumes have been hurt by the global trade disruption, higher prices, especially on tea, have helped moderate some of the losses.
The CBK data shows that tea export earnings rose to Sh47.4 billion in the four months to April, from Sh40 billion in the similar period last year.
CBK Governor noted that the export sector will continue to benefit from the recent cessation of restrictions in key destination markets and increased cargo capacity.
