11 Aug Kenya’s export revenues to the US dip to a 20-year low amidst shilling depreciation
Kenya’s export revenues to the US dip to a 20-year low amidst shilling depreciation
- Kenya’s exports to the United States experienced their steepest decline in over two decades, dropping by 20.19% during the six-month period ending in June.
- This drop is the most significant since the implementation of the Africa Growth and Opportunity Act (Agoa) in 2002, which provides duty- and quota-free entry for various items.
- The Netherlands and Pakistan have overtaken the US as Kenya’s top international export destinations.
Kenya’s export revenue to the United States decreased at the fastest rate in more than 20 years during the six-month period that ended in June, preventing merchants from profiting from the shilling’s depreciation against the dollar.
According to preliminary official statistics compiled by the Central Bank of Kenya, the nation exported commodities worth Ksh32.21 billion ($224.54 million) to the largest economy in the world, down from Ksh40.36 billion ($281.35 million) in the same time the previous year.
Since a 20.64% decrease in 2002, when the Africa Growth and Opportunity Act (Agoa), which permits thousands of items duty- and quota-free entry, first took effect, the profits decline of 20.19 percent was the biggest. Under the Agoa deal, Kenya mostly exports clothing while purchasing pharmaceuticals and airplanes from the greatest economy in the world.
The board chairman of Kenya Export Promotion & Branding Agency, Jaswinder Bedi, a seasoned textiles maker, and technologist, attributed the decline in the value of exports to an overabundance of orders from Kenya.
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