Areas Where Kenyans Make the Most Money in the Export Business

Kenya's export business is booming, with certain sectors leading the charge in generating significant revenue. The broader impact of Kenya’s export success is multi-faceted, touching economic growth, job creation, and income generation. 

The primary effect was the narrowing of the trade balance from a deficit of KSh1.617.6 trillion in 2022 to a deficit of KSh1.604.1 trillion in 2023, according to the Economic Survey 2024 published by the Kenya National Bureau of Statistics (KNBS).

On the income generation side, the Survey shows that export earnings grew by 15.4 percent to KSh1.007.9 trillion in 2023. Domestic exports accounted for Ksh906.323 billion, and re-exports generated Ksh101.596 billion. Export revenue filters down to individual households and businesses, particularly those in the export and production industries. 

The State of The Export Industry In Kenya

In 2023, the export industry in Kenya showed notable growth, with the volumes for most key export commodities increasing. 

According to the KNBS Survey, horticultural products saw the highest rise. The volume of exported horticultural products increased by 168.9 thousand metric tonnes to 772.7 thousand metric tonnes, marking a 28.0% increase.

Several other major export commodities also recorded impressive growth. Cement exports rose by 39.1%, edible products and preparations by 35.9%, salt by 22.5%, iron and steel by 18.8%, essential oils by 16.8%, and tea by 2.3%. These increases highlight the growing demand for Kenyan products in the global markets. 

However, not all commodities fared well. For example, Soda ash exports dropped from 284.7 thousand metric tonnes in 2022 to 216.2 thousand in 2023. Similarly, titanium ores and concentrates fell from 424.9 thousand metric tonnes in 2022 to 293.1 thousand in 2023. The Survey also shows earnings from domestic exports of titanium ores and concentrates dropped from KSh29.4 billion to KSh20.4 billion.

Despite these setbacks, the KNBS Survey shows that overall earnings from domestic exports increased by 16.3%, from KSh779.6 billion in 2022 to KSh906.3 billion in 2023. This increase in export revenue was primarily driven by horticultural products and tea, which together accounted for 41.5% of the total domestic export earnings during the review period.

The KNBS Survey also shows foreign exchange earnings from tea exports rose from KSh 163.3 billion in 2022 to KSh 188.7 billion in 2023. Similarly, earnings from horticultural products exports increased from KSh152.3 billion in 2022 to KSh187.4 billion in the same period. 

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10 Areas Kenyans Make the Most Money in the Export Business

According to the KNBS Survey, Kenyans made the most money exporting the following products. 

1. Tea: In 2023, Kenyans earned Ksh188.7 billion from exporting tea. The demand for tea saw the production of green leaf tea rise from 2,418.2 thousand tonnes in 2022 to 2,577.8 thousand tonnes in 2023. 

2. Horticulture: Kenyans earned Ksh187.4 billion exporting horticulture products. According to KNBS, exports of fresh horticultural produce expanded by 9.9% from 391.5 thousand tonnes in 2022 to 430.2 thousand tonnes in 2023.

3. Coffee: Kenyans earned Ksh34.6 billion exporting unroasted coffee. However, this was a decline from the Ksh37.1 billion coffee exporters earned in 2022. According to KNBS, coffee production contracted by 6.2% from 51.9 thousand tonnes in the 2021/22 crop year to 48.7 thousand tonnes in the 2022/23 crop year due to Coffee Berry Disease.

4. Iron and steel: Kenyans earned Ksh32.2 billion exporting Iron and steel products. According to KNBS, Kenyans exported 196,042.5 tonnes of Iron and steel. While the exports in this sector saw growth, KNBS Data show import of Iron and steel declined from 1,406.6 thousand metric tonnes to 1,208.1 thousand metric tonnes in 2023.

5. Essential oils: Kenyans earned Ksh27.1 billion exporting Essential oils. The KNBS Survey shows that Kenyans exported 145,493.5 metric tonnes of Essential oils in 2023, up 16.8% from 2022. 

6. Animal and Vegetable oils: In 2023, Kenyans earned Ksh23.1 billion, exporting 120,186.7 metric tonnes of Animal and Vegetable oils. However, this is a decline from the Ksh26.9 earned in 2022. Notably, the volume of imported animal and vegetable oils and fats rose by 11.9% in 2023. 

7. Titanium ores and concentrates: In 2023, Kenyans earned Ksh20.4 billion, exporting 69,450.5 metric tonnes of Titanium ores and concentrates. However, this is a decline from the Ksh29.3 earned in 2022. According to the KNBS Survey, the drop was largely occasioned by a decrease in exports to the United States of America. 

8. Medicinal and pharmaceutical products: In 2023, Kenyans earned Ksh17.7 billion, exporting 18,808.5 metric tonnes of Medicinal and pharmaceutical products, a significant increase from the Ksh12.2 billion earned in 2022. 

9. Edible products and preparations: In 2023, Kenyans earned Ksh17.2 billion, exporting 105,196.3 metric tonnes of Edible products and preparations, a notable increase from the Ksh10.1 billion earned in 2022. 

10. Tobacco and tobacco manufactures: In 2023, Kenyans earned Ksh13.7 billion, exporting 11,841.7 metric tonnes of Tobacco and tobacco products, a slight decrease from the Ksh14.1 billion earned in 2022. KNBS Survey also shows tobacco production has reduced from 24,081.7 metric tonnes in 2020. However, its unit price has increased from Ksh678.3 per KG in 2020 to Ksh1,161.0 in 2023. 

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Destination of Kenya’s Export

In 2023, most of Kenya's exports went to other African countries, totaling KSh435.0 billion, representing 43.2% of Kenya's total export earnings. This is a 21.6% increase compared to 2022, mainly due to higher exports to the East African Community (EAC) bloc, which comprised 30.3% of the total export earnings.

Kenya's exports to Asia increased by 19.3%, rising from KSh217.6 billion in 2022 to KSh259.7 billion in 2023. This growth was driven by higher exports to Pakistan, the United Arab Emirates (UAE), and Saudi Arabia, which grew by 23.1%, 27.0%, and 46.3% respectively.

Exports to the European Union (EU) improved by 12.7% in 2023, reaching KSh150.1 billion, up from KSh133.2 billion in 2022. This increase was partly due to higher exports of cut flowers and avocados to the Netherlands, and beans to France. 

Export earnings to the United Kingdom rose from KSh44.6 billion in 2022 to KSh54.7 billion in 2023, driven by more tea and cut flowers sold. Conversely, export earnings from Russia fell by 37.5% due to a decrease in tea exports.

Exports to America brought in KSh68.9 billion, a 19.4% decline from 2022. This drop was mainly due to decreased exports to the United States, which fell from KSh79.9 billion in 2022 to KSh64.3 billion in 2023.

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