Kenya predicts 30pc EAC export drop due to corona rules

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Kenya expects a 30 percent drop on its exports to the East African market as measures to curb the spread of Covid-19 slows cross-border business.

Kenya is worried about the increasing number of truck drivers turning out positive at the Uganda and Tanzania borders.

The two countries remain the leading destinations of Kenyan commodities accounting for Sh64 billion in Uganda and Sh33 billion in Tanzania.

“We believe with current delays at the border points, trade volumes will fall by at least 30 percent this year,” said Adan Mohamed, EAC, and Regional Development Cabinet secretary.

“Trucks that normally take three days to move from Mombasa to Kampala now take eight days. If this continues for up to six months, the drastic will affect the demand as well,” he added.

The East African presidents in a video conference held last week committed to share results for covid-19.

However, Tanzania and Burundi have been seen not to follow the regional public health regulation.

“The EAC affairs ministry should engage the trade, transport and health counterparts in a bid to ensure measures on Covid-19 do not cause unnecessary cost and time burden to the free movement of goods and services in the EAC region,” said the private sector-led by executive director for East Africa Business Council Peter Mathuki in a communique` issued last week.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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