Kenya: Trade with Pakistan important for growth
Kenya and Pakistan have long enjoyed strong diplomatic ties, underpinned by robust commercial activi…Kenya and Pakistan have long enjoyed strong diplomatic ties, underpinned by robust commercial activities. Currently, trade between the two countries is worth about Sh81.8 billion ($800 million) annually, with Pakistan being a leading importer of Kenya’s tea, and more than 80 per cent of the rice imported into Kenya coming from Pakistan. Data from the Kenya Bureau of Statistics shows that in 2014, tea accounted for more than 95 per cent of total exports from Kenya to the South Asian nation.
Pakistan is the fourth-leading destination for Kenya’s goods after Uganda, Tanzania and Britain. In 2013, we exported goods worth Sh37.8 billion to Pakistan. And in 2014, the country was the leading importer of our products in Asia, buying goods worth Sh47.7 billion, an increase of Sh9.9 billion over 2013. Aside from tea, other high-potential export commodities from Kenya to Pakistan include coconuts, dry nuts, mangoes, fresh flowers and powdered milk.
Pakistan can, through strategic deals, sell pharmaceuticals, surgical equipment, textiles, farm machinery and sports goods to Kenya at favourable terms. Several factors underpin trade between the two countries, including a strong commitment from the two nations to grow their ties. This is driven mainly by the fact that bilateral relations have become a key cog in transforming the two economies. These bilateral relations have been sustained by a raft of agreements.
With a population of more than 100 million, the five-nation East African Community is attracting investors from all corners of the globe. Pakistani traders and investors have the opportunity to expand their engagement with Kenya to gain a foothold in the region and cash in on its potential. Kenya is East Africa’s financial and technology hub, and a gateway to the region, with most imports and exports going through the busy Mombasa port. The country’s position in East Africa, and its stature in Africa, was further boosted by last year’s rebasing, which saw Kenya leap into middle-income status and become the continent’s ninth largest economy, up from 12th.