Economic Surveys’ Report By Leo Odera Omolo

DESPITE of the on=going diplomatic spat over the disputed Migngo Island Uganda remains last year stamped its position as Kenya’s number trading partner in the region. Kampala is the major export destination, staying well ahead of the United Kingdom, another major trade partner of the country, the Economic Survey 2009 has revealed.

The survey released last Friday by the country’s Planning,National Development and Vision 2030 Wycliffe Oparanya says Uganda, the country is currently locked in diplomatic row with Kenya over Migingo Island in Lake Victoria, bought goods worth slightly over Kshs.42 billion, even as Kenyan imports grew faster than exports.
Kenya imported goods worth only Kshs 5.9 billion from Uganda, a decline from Kshs 5.9
billion for 2007.

Exports to the neighboring state constituted a quarter of the Kshs 162 billion exported by Kenya Kenyans to African countries. In turn African exports made up just under half the Kshs 344 billions total exports for Kenya..

“The share of exports to African continent was 47.1 per cent, an increase of 2 percentage points from the previous year,” says the report.
UK came second with exports valued at Kshs 38 billion. At number three was Tanzania with Kshs 29 billion worth of exports, having increased its take of Kenyan manufactured goods by Kshs 7 billion over the 2007 figure. Compared to Uganda, Tanzanian exports to Kenya were more balanced topping Kshs 7 billion.

Uganda’s imports from Kenya grew by nearly Kshs 10 billion over the period.The export
trend confirm the East African Community as the single most important economic unit for Kenya..

The next largest export group was the European Union-mainly the UK and the Netherlands, host of the largest flower auction- which absorbed Kshs 89 billion worth of goods.”Together with other European nationsthe total exports stand at Kshs 94.7 billion.

Asia was next, accounting for Kshs 57 billion. The Middle East took Kshs 15 billion worth of goods from Kenya,follow3ed by a distance fourth by the US at Kshs 22 billion.

Overall, Kenya balance of trade is widening, in part egged on by a weak shilling, which for the first time for months topped Kshs 80 for the US dollar and high oil prices The trade deficit widened. from Kshs 330..5 to Kshs.425 billion representing a 28 per cent deterioration.

In simple terms, Kenya is leaking its wealth to foreigners, although in the long –terms the imported machinery{ Kshs 10 billion in 208 intermediate goods could create wealth.

Much of this hemorrhage involved heavy energy import bills, which consumed colossal
amount of Kshs197 billion of Kenya’s wealth.
Domestic exports grew by 23.3 per cent as imports grew by 274 per cent in 2008.
Worse still for the economic, the balance of payment, calculated as total receipts minus outflows by a country recorded a deficit of Kshs 33 billion. This is attributed to a slow down in capital flows due to global l economic crisis
In security matters, crime increased marginally in 2008.From 63,028 cases in 2007,police recorded 63,476 incidents last year or just a 0.7 per cent increase. This is a positive sign for business as level tend to influence investment decision..

Ends
Leooderaomolo@yahoo.com

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Date: Fri, 22 May 2009 22:15:37 -0700 (PDT)
From: Leo Odera Omolo
Subject: UGANDA STILL REMAINS KENYA’S MAJOR TRADING PARTNER