Monday, December 15, 2025
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Kenya missing out on USD 5.3 Billion in exports, KAM Study reveals KAM launches Export Competitiveness Study

Kenya Association of Manufacturers (KAM), in partnership with the German Embassy in Nairobi and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ Kenya), today released a new Exports Competitiveness Study. The study findings show that Kenya has been missing out on USD 5.3 billion annually in unmet export
potential and nearly USD 10 billion in broader export opportunities that remain unrealised. The report comes at a time when the country continues to grapple with a widening export deficit, despite the availability of regional and global markets ready to absorb more Kenyan products.

Launching the report, Peter Njoroge, Director of External Trade at the State Department for Trade, reaffirmed government commitment to advancing reforms that boost Kenya’s competitiveness. He said, “We are strengthening the National Export Strategy to promote value
addition and fully access and utilise existing preferential markets. Key reforms include upgrading logistics infrastructure, digitising approvals and trade documentation, enhancing the National Electronic Single Window System, and reducing regulatory overlaps. We are also expanding MSME financing and promoting value addition across tea, coffee, textiles, edible oils, fisheries and livestock,” he said.

Building on this, Miriam Bomett, Head of Policy and Regulatory Advocacy at KAM, emphasized that Kenya needs to urgently act on the study findings to reverse the export gap. She said, “This report goes beyond analysis as it offers a clear roadmap. Kenya’s markets exist, demand exists, but we must strengthen our competitiveness to seize our share. With predictable regulation, stronger value chains and sustained reforms, we can narrow the export deficit and grow our footprint across Africa and globally.”

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Ms Bomett also highlighted proposals to drive Kenya’s export competitiveness, saying, “To unlock this potential calls for accelerating ongoing reforms aimed at streamlining regulations, reducing overlapping mandates, and expanding digital trade systems to make approvals faster and more predictable. It also calls for enhanced efficiency at Mombasa and Lamu ports, along with improvements along the Northern Corridor to ensure seamless regional movement of goods. Strengthening SME capabilities, given that they are under-represented in export markets despite high entrepreneurial capacity is essential.”

Adding an international perspective, Friederike Hemker, Deputy Head of Cooperation at the German Embassy in Kenya, highlighted the scale of untapped opportunity and the need to address
longstanding bottlenecks.

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“Kenya has a USD 5.2 billion untapped export opportunity. High energy costs, complex procedures and long processes add significant burdens, but Kenya also has remarkable strengths: a vibrant entrepreneurial base, innovation and resilience. If these are matched with targeted reforms, trade can grow rapidly. Germany is committed to supporting Kenyan firms through frameworks such as the Kenya EU-EPA and Africa Free Continental Trade Area (AfCFTA), while also improving regional logistics through enhanced port efficiency and Northern Corridor upgrades,” she explained.

Speaking on behalf of GIZ Kenya, Dr. Christoph Zipfel, Director for Sustainable Economic Development, emphasized the importance of strengthening value chains as the backbone of competitiveness, saying, “The study was informed by the need for Kenya to look at opportunities that lie within intra and extra Africa Trade. It identifies clear opportunities to enhance competitiveness through improved regulatory efficiency, technology adoption, and strengthened skills development.”

With renewed collaboration between industry, development partners and government, the report positions itself as a practical roadmap for strengthening Kenya’s export competitiveness. With targeted interventions and coordinated action, Kenya can significantly expand manufacturing-led exports, reduce the export deficit and secure a stronger position in regional and global value chains.

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