Key Messages
Kenya has been a net importer from India with imports and exports reaching $1.7 billion and $53 million, respectively, in 2019. Imports from India are dominated by petroleum oils of both light (4.9% of total imports) and not light oils and preparations (23%) in the past five years. Exports to India have recently been dominated by disodium carbonates, which grew from less than $1,000 in 2015 to $21 million (or 39% of India-bound Kenyan exports) in 2019. Kenya may boost efforts to increase exports of disodium carbonate, base metals and articles, plastic products, hides and skins, medicaments and peas – products for which India has increasing demand and/or Kenya has increasing efficiency. Kenyan garments, margarine, flowers, vegetables, avocados, macadamia and pineapples are yet to gain importance in the Indian market. Kenyan exporters to India face high tariffs since the current bilateral trade agreement only covers trading under most-favoured nation status. To boost exports to India, Kenya may consider supporting and providing finance for micro, small and medium-sized enterprises in horticulture, fruit and vegetables and textile value chains; supporting export marketing; and developing standards appropriate to the Indian market. This policy brief is extracted from a SET paper ‘Promoting Kenya’s exports: a country- and product-specific analysis ’. It is a part of an emerging analysis series that focuses on Kenya’s trade with the EAC, the rest of Africa, European Union, United Kingdom, United States, China and India.
