Factory Raw Material Imports Cross Sh1 Trillion as Trade Deficit Deepens


Kenya’s spending on factory inputs surged past the Sh1 trillion mark in 2025, setting a new record and signalling stronger demand for production materials even as the country’s trade gap continued to widen.

Provisional figures from the Kenya National Bureau of Statistics show that imports of non-food industrial supplies rose to Sh1.017 trillion by December 2025, up from Sh934.3 billion the previous year. The increase reflects heavier purchases of raw materials and intermediate goods used in construction, processing and light manufacturing, pointing to revived momentum in sectors that depend on imported inputs.

The flip side is familiar. Kenya’s overall import bill continued to outpace export growth. Total goods imports climbed to Sh2.795 trillion in 2025 from Sh2.699 trillion a year earlier, while exports edged up only marginally to Sh1.112 trillion from Sh1.108 trillion. As a result, the goods trade deficit widened to Sh1.68 trillion, compared with Sh1.59 trillion in 2024.

Central Bank Governor Kamau Thugge attributed last year’s higher import bill largely to increased inflows of intermediate and capital goods intended to support domestic production. Industrial supplies accounted for the biggest share of imports, surpassing fuel, machinery, food and consumer goods, underscoring how reliant local industry remains on foreign-sourced materials.

Meanwhile, the fuel and lubricants import bill eased to Sh570.4 billion from Sh618 billion, reflecting softer global oil prices and possibly incremental shifts in domestic energy consumption. In contrast, machinery and capital equipment imports jumped to Sh424.6 billion from Sh353.8 billion, suggesting stronger investment in productive capacity and infrastructure.

Transport equipment imports rose to Sh260.5 billion from Sh238.6 billion amid higher demand for vehicles and logistics assets. Food and beverages imports inched up to Sh288.1 billion from Sh283.3 billion. Consumer goods imports, however, fell to Sh210.8 billion from Sh225.4 billion, hinting at subdued household demand or a tilt towards locally made substitutes.

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On the export front, food and beverages remained Kenya’s top earners, bringing in Sh429.1 billion compared with Sh408.3 billion the year before. Non-food industrial supplies exports rose slightly to Sh238.8 billion, while consumer goods exports reached Sh246.9 billion. Yet these incremental gains have not been sufficient to offset rising imports.

The persistent trade imbalance is partly rooted in Kenya’s dependence on raw agricultural exports such as tea, horticulture and coffee, which fetch lower returns than processed products. Trade and Industry Cabinet Secretary Lee Kinyanjui has argued that cutting production costs and boosting value addition are key to narrowing the gap, noting that processed tea can command several times the price of raw leaves.

Coffee export earnings rose sharply to Sh52.1 billion in 2025 from Sh38.4 billion the previous year, while tea exports dipped slightly to Sh186.9 billion from Sh189 billion.