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Kenya’s volume of trade drops to Ksh.2.29 trillion in 2020

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Kenya’s volume of trade drops to Ksh.2.29 trillion in 2020

Kenya’s volume of trade drops to Ksh.2.29 trillion in 2020

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Kenya’s volume of trade dropped to Ksh.2.29 trillion in 2020 from Ksh.2.4 trillion in 2019.

The drop is following the report of the COVID-19 virus globally that led to countries closing down their borders to contain the virus.

The value of Kenya’s imports was at 1.64 trillion, while total exports stood at Ksh.0.64 trillion in 2020.

Further, the temporary closure of international boundaries were constant disruptions to world trade that affected both supply and demand of the global economy.

Despite the decline in volume trade, the country registered an improved balance of trade from a deficit of Ksh.1.2 trillion in 2019 to a deficit of Ksh.999.9 billion in 2020.

The economy contracted for the first time in nearly three decades as the coronavirus pandemic hit the key sectors.

The sectors included tourism, education, transport, and manufacturing.

According to the National Treasury Ukur Yatani, output or Gross Domestic Product (GDP) declined by 0.3 percent in 2020.

Additionally, production fell despite an overhaul of Kenya’s national accounts data that show Gross Domestic Product (GDP) was Ksh.10.753 trillion last year.

The Kenya National Bureau of Statistics (KNBS) estimates GDP of Ksh.10.256 trillion in 2019  with the new reference year of 2016 from 2009.

This is compared with Ksh.9.74 trillion with the previous data series.

The economy, which grew 5 percent in 2019, exited a recession in the last quarter of 2020 after posting marginal growth of 1 percent in the three months through December.