EAC a lifeline in Kenya’s exports – 2025 Economic Survey

Kenya’s exports continue to depend heavily on the East African Community (EAC) as a key market, according to the 2025 Kenya Economic Survey. Despite some challenges, the EAC remains central to Kenya’s regional trade and economic growth.

EAC’s Dominant Role in Kenya’s Exports

The Economic Survey shows that Kenya’s total exports rose to KSh 1.12 trillion in 2024, up from KSh 1.007 trillion the previous year.

This growth was largely driven by a 77.3% increase in re-exports, including kerosene-type jet fuel to neighbouring countries. The EAC remains the primary destination for these exports, with intra-EAC trade steadily growing and contributing significantly to Kenya’s export earnings.

Intra-EAC exports increased from 17% of Kenya’s total exports in 2017 to 21% in 2023, reaching USD 6.3 billion.

Economic Growth and Infrastructure Investments

According to a recent report by the East African Business Council and RSM Audit Firm, East Africa’s economy is projected to grow by 5.7% in 2025, up from 5.1% in 2024, with Kenya’s GDP expected to reach around 5.2%. This growth is supported by expansions in agriculture, manufacturing, and services-sectors that underpin Kenya’s export capacity.

Dr. Caroline Karugu, Principal Secretary, State Department of East African Community, said,

"The EAC remains a critical market for Kenya. Our efforts continue to focus on enhancing regional integration through infrastructure development and addressing trade barriers to facilitate smoother trade flows."

Infrastructure investments totalling $44 million under the EAC’s 2023/2024 budget, aimed at improving regional trade connectivity, have helped boost intra-EAC trade by 13.4%. Further investments, including the expansion of the Port of Mombasa and the redevelopment of Kisumu Lake Port, are expected to enhance trade efficiency and regional connectivity.

Challenges to Intra-EAC Trade

Despite these positive trends, trade within the EAC faces challenges such as persistent non-tariff barriers, inconsistent application of the Common External Tariff (CET), and domestic taxes that hinder the full potential of intra-EAC trade.

Dr. Karugu noted, "We continue to engage with partner states to ensure policy harmonisation and alignment to the EAC Customs Union principles to promote a conducive environment for regional trade."

She added that the Cabinet Secretary in charge of EAC and ASAL’s Beatrice Askul Moe has emphasised the need to address internal trade barriers within the community, highlighting the importance of eliminating obstacles to foster seamless trade.

Business and government leaders continue to urge EAC Partner States to fully implement Common Market and Customs Union commitments, operationalise trade remedies mechanisms, and remove barriers to unlock the projected $1.9 billion trade opportunity under the African Continental Free Trade Area (Afcfta).