Kenya: India Elbows Way to Become Top Import Market.

India is now Kenya's top source market for imports ahead of its Asian rivals China and the United Arab Emirates, in what is seen as the clearest shift yet by Kenya to the East for international trade.

Fresh data from the Kenya National Bureau of Statistics show the value of imports from India opened a clear gap ahead of the two in 2012 - the results of enhanced trade relations between Kenya and India in recent years.

Eleven-month data for 2012 published in the Leading Economic Indicators (December) shows the value of imports from India has increased to Sh174.6 billion, way ahead of China's Sh154.7 billion and the UAE's Sh138.2 billion.

Kenya is a net importer of capital goods such as petroleum products, machinery and equipment, vehicles and non-food industrial supplies.

Imports from India in 2011 amounted to Sh148.8 billion, second after the UAE's Sh181.4 billion. Those from China were worth Sh144 billion in the same year.

Analysts say India has managed to clinch the lion's share of Kenya's import volumes because of, among others, the prevailing cordial foreign policy between the two countries since Kenya gained independence, relatively cheaper goods, quality, and proximity of its ports to Kenya.

The main imports from India include textiles, petroleum products obtained from bituminous minerals (other than crude), medical equipment and drugs, pharmaceuticals, flat-rolled iron and non-alloy steel products, electrical goods, food-processing machinery, special purpose motor vehicles and trucks among others.

"There are quite a number of factors why Kenya is importing more from India. For instance, you will realise that many products on sale in Kenyan retail stores - such as textiles (garments) - come from India. They are cheaper and as we know, Kenyan consumers are sensitive to price, making these a top choice," said Tiberius Barasa, the executive director of the Centre for Policy Research, a governance and public policy analysis think-tank.

"But we are realising that it's not just about price but also quality that is standing out for Indian imports, and this is something that can definitely be sustained in the near-term. Regional proximity of India also makes it easy to travel to and to transport goods to Kenya," said Barasa.

Source : allafrica.com