NAIROBI - Kenya’s single largest export market, Uganda, is seeing its economy rebound faster than expected thanks to the ability to sell food to its neighbours and contain consumer prices.
According to a report just released by the International Monetary Fund (IMF) growth is expected to rebound to GDP growth of seven per cent from mid next year after holding at 6.3 per cent between June this year and June next year.
Headline inflation is at an average of 13.3 per cent. Kenya’s exports to Uganda, have grown steadily over the years, reaching a peak of Sh42 billion in 2008 up from Sh17.7 billion 13 years ago.
This growth underscores its importance to local businesses. The increase in imports from Kenya has been driven by steady growth of the Ugandan economy over the past 15 years.
For example, the Ugandan economy expanded at a bullish 8.6 per cent in 2007 and, as a result, Kenyan exports to her western neighbour jumped by over Sh6 billion to stand at Sh33.6 billion.