Unpaid meat exports, lost Dubai cargo cost Kenyan traders Ksh.6.7 billion

According to KNCCI President Dr. Eric Rutto, Kenyan traders have been losing billions in trade deals—an issue that necessitated the opening of the Dubai offices to mitigate risk. 

KNCCI leadership says Kenya and UAE trade relations have not only increased opportunities but also brought higher risks.

The trade imbalance between Kenya and the UAE continues to widen despite the two having agreed on several bilateral agreements, as per KNCCI. 

The Chamber has raised concerns over the number of Kenyan traders who are losing billions due to unpaid products and loss of containers, with estimates showing that annually, Kenyans could be losing about 6.78 billion shillings.

The Chamber now hopes the situation will change or slow down following the opening of the Dubai offices.

"Per week, from the reports that we receive, we lose about 3 containers of fresh produce. That is a total of around 150 containers in a year, and if you were to look at an average of 5 million shillings, you can calculate the value. In terms of meat exports, approximately 20 to 25 percent are not paid; that is approximately 6 billion. So, we are in the range of about 7 billion in terms of what we are losing,” Dr. Rutto said. 

Cynthia Nyawira, KNCCI’s chair of Economic Diplomacy argued that rogue traders have taken advantage of Kenyan exporters because they believed no one is watching. 

“That changes today,” she said.

Through the Dubai office, the Chamber says it intends to strengthen market linkages, promote Kenyan business interests, and provide protection for exporters through a structured system. 

Exporters, however, will be required to be KNCCI members to access safeguards such as buyer verification and approval, full business profiling of buyers, advance payment solutions of up to 80 percent for supplies to established firms, end-to-end traceability and tracking, and compliance support through vetted service providers.

"We want to increase year-on-year 10 percent directly attributed to the Kenyan National Chamber of Commerce. So that 753 million—approximately 80 billion—is to increase year-in-year 10 percent through our office in Dubai, which will serve the whole of the GCC countries,” added Dr. Rutto. 

The Chamber of Commerce is encouraging traders to take advantage of their Dubai office to avoid being cheated out of trade deals.