Chinese imports near Sh400b mark

The value of goods that Kenya imported from India dipped for the third year in a row last year, giving way for further growth of Chinese imports.

Indian imports declined 17 per cent in the year to December to Sh170 billion compared to Sh205 billion in 2016.

Imports from China, on the other hand, jumped 20 per cent to Sh390 billion compared to Sh337 billion in 2016.

Kenya imports a large mix of goods from China, but the importation of Standard Gauge Railway equipment last year may have contributed to the surge in the value of imports.

According to latest data from the Kenya National Bureau of Statistics (KNBS), the value of imports from China accounted for more than a fifth of goods imported to the country last year.

Kenyans imported goods worth Sh1.725 trillion to December 2017, a 20.5 per cent growth compared to Sh1.431 in 2016.

Of the Sh1.725 trillion worth of goods imported, KNBS data shows that 22.6 per cent (Sh390 billion) was from China.

Chinese imports to Kenya have steadily grown and more than doubled over the past five years, growing from Sh167.2 billion in 2012 to last year’s Sh390 billion.

Among the major imports from the country to Kenya are electronics, motorcycles, motor vehicles spare parts, furniture and clothes.

Other than imports, China has a strong hold on Kenya in other areas, including being the single largest lender to the country, with debt owed to China currently at over Sh250 billion.

Chinese firms have also made inroads across different sectors, particularly in mega infrastructure projects.

India was, a few years ago, the largest source of Kenya’s imports, but has sustained a declining trend since 2014 when the value of import stood at Sh264.5 billion