Exports and Imports of Kenya's government for the last decade Essay

Exports and Imports of Kenya's government for the last decade - Essay Example The major regional trade blocs for Kenya include EAC (East African Community) and COMESA (Common Market for Eastern and Southern Africa) (EÃŒ tats-Unis. 2006, 45). Although Kenya makes large and diverse exports, the economy barely feels the impacts of exports. Between 2000 and 2010, Kenya registered a sharp decrease in its exports and subsequently the relative importance of the same. Due to the economic imbalances during the past decade in the country, Kenya may not easily attain economy growth. Research conducted by World Bank necessitated that Kenya should increase its export competitiveness. In the decade, Kenya’s exports appeared to be below its potential (Aswathappa 2010, 56). Between 2000 and 2010, Kenya registered an average annual growth rate of its export merchandise at only ten percent. Kenya, compared to other developing countries like Vietnam appeared to be underperforming. Vietnam registered higher rates of growth in export merchandise. Kenya is widely identified as a trade deficit nation. This remains to be the case since the major exports from Kenya tend to be vulnerable to weather conditions and international prices. These factors may greatly affect the economy (Greenaway 2010, 78) Agricultural products occur as the main focus on Kenya’s export industry. About seventy-five percent of the population relies on agriculture and its related activities as their main source of income. Additionally, agriculture contributes significantly towards national production at twenty-five percent. Mainly horticultural products as well as tea contribute majorly on exports merchandise for Kenya. In 2006, the collective share of these two products was ten times higher than the share of the other export items. Additionally, Kenya exports petroleum by products to its regional neighbours besides providing internal petroleum consumption. The fact that Kenya is an Agricultural State make it an