Kenya lost Sh6 billion in re-exports between January, July 2017

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Kenya lost Sh6 billion in re-exports between January, July 2017

By Dominic Omondi
Published: Oct 14th 2017 at 19:36, Updated: Oct 14th 2017 at 19:36

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Congestionof containers at the port of Mombasa in 2008. Traders are now questioning the drop in cargo import at the port of Mombasa [PHOTO BY GIDEON MAUNDU/STANDARD].

Political jitters scared away traders from neighbouring countries, denying Kenya a massive Sh7.8 billion in exports and re-export earnings.

This is according to the latest data from the Kenya National Bureau of Statistics (KNBS).

The Latest Economic Indicators, August 2017, shows that Kenya lost Sh6 billion in re-exports and another Sh1.8 billion in exports between January and July 2017, leaving a huge hole in the country’s exchequer.

Re-exports- or export of imported products, particularly to landlocked countries in the region- took the biggest hit as traders opted for a different route. And the likeliest route chosen by these traders, analysts noted, was Tanzania’s Central Corridor served by the Port of Dar es Salaam.

Between January and July, 2017 re-exports declined to Sh38 billion from Sh44 billion it managed in the same period last year, as political temperatures rose.

And with the October 26 elections cast into doubt after former Prime Minister Raila Odinga opted out of the race, things could get worse. Kenya’s re-exports into neighboring countries includes petroleum products and manufactured articles.

Although re-exports have generally been slowing down, a dip of 11 per cent during this period was significant compared to a marginal decline of 1.8 per cent in the same period in 2016?

In 2016, a 12.1 per cent decline in the value of re-exports contributed to a decline in the value of total exports from Sh581 billion in 2015 to Sh578.1 billion. “The decline in re-exports was attributed to a contraction in the re-exports of petroleum products and manufactured articles,” read The Economic Survey 2017.

Re-exports declined from Sh81.3 billion in 2015 to Sh71.5 billion in 2016. This is even as re-exports to Tanzania went up. “Total exports to Tanzania grew from Sh33.7 billion in 2015 to Sh34.8 billion in 2016, mainly attributable to a 28 per cent growth in re-exports,” noted the 2017 survey by the statistics office.

Kenya’s re-exports to Tanzania includes mostly packaged medicament, which constituted about 18 per cent of the total value of exports to Dar-es-Salaam. Tanzania, however, has been weaning itself off Kenya’s products, with President John Maghufuli’s policy of promoting local manufacturing.

This has seen Kenya’s exports to Tanzania decline by 18 per cent during this period from Sh14.5 billion in the first seven months of 2016 to Sh11.8 billion in the same period in 2017.

Soon, export of packaged medicament will also go down with the aggressive foray of India and China into Tanzania. India supplies Tanzania with 60 per cent of packaged medicament, followed by Kenya which supplies 19 per cent.

The poor performance of the country’s re-exports has been blamed on the decline in re-exports of petroleum products. “The values of domestic exports and re-exports of petroleum products decreased by 29.7 per cent and 28.2 per cent to Sh4.4 billion and Sh38.5 billion, respectively, in 2016,” read the Economic Survey 2017.

The election period has seen trucks from the neighboring countries of Rwanda, Burundi and Uganda choose a different route, contributing to a plunge in the consumption of diesel, according to the latest figures from Petroleum Institute of East Africa.

Consumption of light diesel slipped from 1.3 billion litres in the first seven months of 2016 to 1.1 billion litres in the same period this year.

“The main users of diesel in Kenya are the heavy commercial vehicles. Agricultural sectors are also large diesel consumers. Very soon the SGR will be the next largest consumer when fully operationalised,” said George Wachira, a director at Petroleum Focus Consultants. Mr Wachira noted that “growth in diesel consumption is normally the best indicator of GDP growth.”

Traders from the neighboring countries probably fear for another post poll violence in which movement of goods from the port of Mombasa to neighboring countries was curtailed as violence rocked parts of the country. A section of the railway line from Kenya to Uganda was uprooted, as traders counted losses.

In the run up to the August elections, Ugandan traders were reportedly saying they would pass their goods, mostly coffee, through Tanzania’s Central Corridor as opposed to Kenya’s Northern Corridor.

“It might be a good idea to begin opening up and using the route through Dar es Salaam,” the executive director for Private Sector Foundation of Uganda Gideon Badagawa was quoted by a local daily in Uganda.

However, export of locally produced goods went up slightly aided in large part by improved prices of horticultural produce- cut flowers, fruits and vegetables- in the international market.

“Definitely this becomes more than an individual company to handle but rather a country strategy. All of us as exporters and government of Uganda we must join hands for plan B Tanzania,” the local daily quoted yet another player, Joseph Nkandu, the executive director of National Union of Coffee Agribusiness and Farm Enterprises.

Mr Nkandu said that that although Dar es Salaam, over 1,700 kilometres, comes with added costs of more than 20 per cent, it is less than diversion costs in case violence erupts.

Using the Mombasa Port costs about $1,500 (Sh150,000) to $1,800 (Sh180,000) for a 20 feet container, compared to Tanzania’s $2,500 (Sh250,000) and more including more time in delays. The Leading Indicators showed that Kenya exports of locally produced goods were at Sh314.8 billion as of July 2017 compared to Sh302.7 billion in the same period last year.

The country exported horticultural produce valued at Sh64.7 billion in the period under review compared to Sh58.1 billion in the same period last year, earning the country critical foreign currency. The value of export of tea and coffee, however, declined.

“The quantity of tea exported dropped from 42,369.54 tonnes in June 2017 to 41,437.02 MT in July 2017, while its value decreased from Sh13.48 billion to Sh13.44 billion over the same period,” read part of the report.

“The quantity of produced tea decreased from 40,537.92 tonnes in June 2017 to 31,565.43 MT in July 2017. The price of processed tea dropped from Sh324.63 to Sh309.97 per kilogram over the same period.”

Quantity of coffee exported decreased from 4,442.89 tonnes in June 2017 to 3,597.63 tonnes in July 2017, while its value went down from Sh2.5 billion to Sh1.97 billion over the same period.

Kenya lost Sh6 billion in re-exports between January, July 2017
 
Interesting facts about tourism in Kenya
#1. Starting with the tourist attractions, which, perhaps, have put the country into the international limelight, one cannot fail to acknowledge the beauty and uniqueness of Kenya’s game parks and reserves. These parks and reserves cover thousands of acres of lands, allowing the game animals to freely roam.
#2. Some of the most frequently visited parks include the Nairobi National Park , Tsavo Game Reserve, Maasai Mara Game Reserve and Amboseli National Park, among others.
#3. Any person coming on safari will enjoy a view of animals that cannot be found in other places: lions, elephants, zebras, giraffes, gazelles, wildebeests, leopards and cheetahs, among others.
#4. Another characteristic thing about Kenya is its fantastic sights. Anybody visiting Kenya will surely notice some unique scenes and places. Among them are places like the Fourteen Falls in Thika, which is ranked among the longest and steepest falls in East Africa.
Interesting Facts About Kenya: Fourteen-Falls Thika. Image source
#5. There are also some scenes that cannot be found anywhere else in the world. As one travels to Machakos city, there is a certain step portion of the highway that seems to defy gravity: things normally go upward instead of downward. This place has remained a mystery, and even Sir Isaac Newton himself would be shocked to find that his theory can, after all, be rebutted.
#6. Another mysterious scene is the Crying Stone in Kakamega. As one approaches this town from Kisumu city, there is a unique, tall stone, around seven feet, that produces a streak of water that makes it appear like it is crying. The droplets of water, which local scientists have failed to understand, normally appear like tears.
Interesting Facts About Kenya: The crying stone in Kakamega, Kenya.
#7. And then there are the coastal towns of Mombasa, Malindi and Kilifi, which harbor some of the most interesting views in the world. Mombasa is an old town first developed by the Portuguese during the 19th century. Perhaps the oldest and most unique building is the famous Fort Jesus, a sanctuary used by the Portuguese for protection during siege.
#8. Mombasa is surrounded by the Indian Ocean, making it one of the most beautiful cities in the world. The city is normally frequented by many visitors, not just because of its beauty but also for business opportunities.
#9. Kenya is also covered by forests, making it one of the greenest countries
in the world. Some of the largest rain forests include the Mau, Burnt Forest and Kakamega Forest .
#10. Some of the forests, especially Kakamega, have some of the rarest breeds of butterflies and snakes that cannot be found in many other places.
#11. A good portion of land in Kenya is covered by a mass of water. Apart from the Indian Ocean at the coast, Kenya has several lakes, both freshwater and salty. Some of these lakes include Lake Victoria, Lake Nakuru, Lake Naivasha and Lake Bogoria, among others. The country also has many rivers, making it possible for visitors to travel by boat instead of cars.
#12. Apart form the game reserves and parks, other tourist attractions include mountains and unique terrain. Some of these mountains include Mt. Kilimanjaro, Mt. Kenya and Mt. Elgon. When it comes to unique terrain, the country boasts Hell’s Gate and the Aberdares ranges.
Interesting facts about Kenya: Mt. Kilimanjaro. Image source
Facts about Kenyan people; their culture, tradition and social life
#13. Social life in Kenya also accounts for one of the most interesting facts. Unlike most other places in the world, where people are normally unconcerned about others, social life in this country is tied to companionship, hospitality, kindness and a willingness to help. This is, perhaps, what makes visitors want to come back again and again.
#14. The kind nature of the Kenyan people might be attributed to the setting and structures of families and communities. In Kenya, a child is brought up by the community and the society at large, and not just the family members alone. This makes it easy for people to develop feelings of concern and helpfulness towards others, strangers or not.
#15. The culture of the Kenyan people is also unique. Although a fast-developing country, Kenyans are conservative and reserved about their culture. However, that does not mean that they are not diversified.
Read: facts about Uganda
#16. The Kenyan people can compromise some of their daily routines and beliefs just to accommodate people from other cultural backgrounds. However, visitors must also acknowledge and respect the locals’ way of life for good coexistence.
#17. When it comes to maintaining time, Kenyans are not that bad, but five- or even ten-minute delays are to be expected. Any visitor scheduled to meet a Kenyan should know that delaying for a few minutes is never considered being late: it is normal!
#18. Greetings in Kenya are a fabric of their social and cultural life. Whenever people meet, irrespective of whether they are acquaintances, they must greet each other, either through a raised hand, thumbs up or even the use of the most common words, “Habari yako.”
Flag of Kenya
Flag of Kenya. Image credit – CIA
Facts about food and fashion
#19. When it comes to food, the staple meal in Kenya is a delicacy known as “ugali.” This is a meal made from flour; it can be maize, sorghum or even millet. The delicacy is normally accompanied by stew and is enjoyed by many visitors, including President Obama in his recent visit.
#20. Another interesting fact about Kenya is its people’s fashion. Although it is very common to find Kenyans wearing Western clothes, their own way of dressing is distinct. When visiting this country, one cannot fail to notice a red/pink/maroon piece of clothing commonly referred to as “Maasai Shuka” around people’s shoulders/waists/necks.
#21. Inasmuch as there is no uniform footwear among the Kenyan people, there is no doubt that Sahara Boots and sandals, for both men and women, are the most commonly worn shoes around the country.
 
Tanzania itumie nafasi hii kupata wateja wengi wa kutumia bandari ya Dar.
 
Temporary occurrences are nothing to be proud of. It costs traders $1000 more dollars and 2-4more days to ship a container via the central corridor compared to the northern one.

Vote leaders who'll improve the efficiency in Dar Port if you want the change to be permanent
 
Kenyans can't write any imformation without intentional misinformation... so sad taking a shot on Tanzania onto serious issues...

"
Using the Mombasa Port costs about $1,500 (Sh150,000) to $1,800 (Sh180,000) for a 20 feet container, compared to Tanzania’s $2,500 (Sh250,000) and more including more time in delays."..


Pambaneni na hali zenu Wakenya
 
Bowie said:
Tanzania itumie nafasi hii kupata wateja wengi wa kutumia bandari ya Dar.
Click to expand...

Mivivu kama nyie mpo mpo na hamuna uwezo huo, ikiwa mlishindwa kutupita wakati tukiwa chini kabisa mwaka wa 2008 iwe leo ndio mtafanya nini kipya. Nyie ni wale wale na siku zote mtabaki huko huko nyuma yetu maana mna uzembe wa kufa mtu.
Leo hii mnasheherekea matatizo ya Kenya ilhali hamuna juhudi zozote za kunufaika, mpo mnasubiri embe lidondoke chini ya mwembe.
 
Relax kwanza, subiri kwanza Kenya ipite katika hiki kipindi kigumu ndiyo uweze kusema unalotaka kusema, kumbuka si desturi ya kiafrika kumsema au kujibizana na mtu aliyepatwa na msiba, sasa hivi kuna msiba Kenya.
 
This is The Hague case, says NASA of police killings
 
joto la jiwe said:
Relax kwanza, subiri kwanza Kenya ipite katika hiki kipindi kigumu ndiyo uweze kusema unalotaka kusema, kumbuka si desturi ya kiafrika kumsema au kujibizana na mtu aliyepatwa na msiba, sasa hivi kuna msiba Kenya.
Click to expand...

Nyie mna desturi ipi wanafiki wa kutupwa, ndio maana mpo na kila aina ya raslimali lakini bado mpo maskini balaa maana roho zenu nyeusi kupitiliza. Huwa haileti mantiki muungano wa nchi mbili halafu wenye madini zaidi ya nchi zote Afrika, wenye vivutio vya watalii bora zaidi ya nchi zote Afrika, wenye karibu kila aina ya raslimali lakini wenyewe maskini, nafikiri wivu wenu na uzembe ndio zinachangia.

Sisi tutapitia haya maana ndio ishara za demokrasia bora iliyotukuka na tutaendelea kuwaacha kwa kila hali, kielimu, kiuchumi, kimichezo na kila kitu. Eat that danganyikan....hehehehe
 
Yote hayo hayana maana yoyote kama mnauana kama wanyama, haingii akilini katika karne hii ya sayansi na teknolojia bado kuna watu wanauwana kwa misingi ya kikabila, hayo ni maisha ya wanyama msituni, kwamba simba hawezi kukaa pamoja na nyati, ninyi mnastahili kukaa msituni na wanyama hamuwezi kuchanganyika na watu waliostaarabika, Kenya, Somalia na South Sudani zipo kwenye level moja ya maendeleo ya binadamu, nani achanganyike na primitive community kama Kenya, kila siku kuchinjana, hata watutsi na wahutu wameamua kuacha, ninyi primitive people hamtaki kumaliza tofauti zenu, hovyo kabisa.
 
https://www.facebook.com/
Sikiliza ukweli usiopenda kuusikia, but that is the fact
 
Si ndio maana nawaandika kila siku sijui mteja gani ataamini huo ujinga!
 
And u believe that balant lie! And those charges supposed to be under Magufuli watch sio? U r in self denial! Mlikosa Pipeline ya Uganda kwa uandishi wa namna hii mkijaribu ku-compare Lamu na Tanga. BTW from Dodoma our SGR trains will be shunting at 200 km/h [emoji115] [emoji23]
 
The article clearly puts the cost of using MSA at 1500-1800 and for dar at 2500 and more. Taking your cheapest cost minus our cheapest cost, $2500 - $1500 = ? Very simple arthimetics.

It takes 12hrs to 3 days to clear cargo in Mombasa compared to 5 days in Dar.

Just achieving Mombasa grade efficiency would add $1.8bn to Tz's economy and $800mn to your hinterland countries economy, yet keep in mind Mombasa is quite inefficient by global standards. Na huyu wewe hapa wajigamba na mijisifa ya kijinga.

Tanzania aims for big results with Dar es Salaam port expansion

Tanzania: Mombasa-Style Efficiency at the Dar es Salaam Port Could Transform the East African Economy | IDG Connect
 
Jesus Geza, how many times will you rant like this, huh?

Unapinga mpaka figures za the article you just posted? kupingana tu ndio unajua, no matter what it is you're arguing. Soma my last post uelewe tafadhali

There's more that maketh a country than a lone pipeline! Total Sa ilichagua Tz route ili reservers zao zote ziunganishwe na zipitie mahali pamoja, so eti Tz ilitoa pesa ikamkalisha Mu7 chini.

Kisha your SGR will be shunting at 200km/hr, well, good for you. Kenya's SGR is already shunting at 120km/hr. You notice the difference?
 
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