Pakistan has surpassed Uganda as the leading market for Kenyan exports.

Pakistan surpassed Uganda as Kenya’s top export destination in the first quarter of the year, owing to increased tea exports.

Exports to the Asian nation increased by 21.5 percent to Sh16.86 billion in the same time last year, from Sh13.87 billion.

Exports to Uganda increased by 0.4 percent over the period to Sh16.68 billion.

Pakistan is Kenya’s major client, and volumes were projected to rise with the abolition of Pakistan’s 0.5 percent attestation fee on tea exports in August 2021.

For years, tea stakeholders fought for the repeal of the charge, which made Kenyan tea more costly in Pakistan when compared to beverages from other nations.

Other major export markets were the Netherlands and the United States, which purchased Sh15.83 billion and Sh14.78 billion, respectively.

However, the country’s trade imbalance expanded by Sh34.2 billion, or 10.8 percent, over the period owing to an increase in imports driven by gasoline and industrial supplies.

Despite a 26.3 percent increase in exports to Sh240.1 billion, the country’s import bill increased by 16.6 percent to Sh591.6 billion, expanding the trade imbalance to Sh351.54 billion.

Last year’s economic growth as the nation emerged from the harshest of the Covid-19 limitations increased demand, enabling firms to restart manufacturing that had been halted in 2020.

Furthermore, supply interruptions in wheat, palm oil, and petrol due to Russia-Ukraine wars have resulted in increased prices for these commodities.

Imports of petroleum and lubricants increased by 64.2 percent to Sh126.1 billion and 17.2 percent to Sh237.1 billion, respectively, increasing the deficit from Sh317.3 billion in the same time previous year.