What does a decline in Kenya’s Import bill Signify?

2 May

whesongerwealth

The countries import bill declined by Kes 14.4 Billion in the month of February. This further reduced trade deficit to Kes 69.7 Billion from Kes 83.7 Billion in January 2013. Does this decline in imports have any effect on our economy and the general welfare of the citizens?

Having imported Kes 117 Billion worth of goods and services in December, Kes 130 Billion in January and Kes 116.4 Billion in February, Kenya is a net importer, and can’t maintain her growth momentum with reduced import levels. Kenya’s imports are majorly Consumption in nature rather than investment oriented. Does it mean Kenyans are finally Buying and  Consuming Made in Kenya products?

With almost 50 per cent of imports (fuel, machinery and transport equipment) being used in production process, it indicates a possibility of increased efficiency which would lead into higher production growing the country’s export capacity going forward.

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There are basically five main reasons for…

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