The value of imports ordered by government agencies hit an all-time high of Sh110.9 billion in the 12 months to last December, partly due to a weakened shilling in the first quarter of the year and a sustained appetite for foreign goods.
An analysis of the official data from the Central Bank of Kenya (CBK) shows in the period under review, the value of government imports rose from Sh62.07 billion in the year ended December 2023.
The CBK data also shows that the shilling was trading at a high of Sh157.20 against the dollar at the start of 2024, making imported goods more expensive.
Although the CBK does not expressly disclose particulars of the imports, items commonly ordered by State departments and agencies are furniture, stationery, machinery, motor vehicles, textiles, and arms, among others.
The statistics show that the government in October 2024 imported items worth Sh24.8billion—a record for a single month.
This was followed by an equally high monthly performance in January and February, with imports worth Sh13 billion attributable to the weak shilling. Last December recorded the lowest value of government imports worth Sh2.3 billion.
The data shows that government and commercial imports rose from Sh2.59 trillion in 2023 to an all-time high of Sh2.7 trillion last year.
Based on the 2024 data, President William Ruto’s administration is importing more than his predecessor, signalling an increased appetite from his government for foreign goods despite the push for the purchase of locally made products under an initiative known as Buy Kenya-Build Kenya.
Comparatively, the record Sh110.9 billion imports by State agencies in 2024 under President Ruto’s administration is way higher than the Sh76.8 billion shipped in under his successor Uhuru Kenyatta in 2022 and Sh79.6 billion in 2021.
During the current regime, the Buy Kenya-Build Kenya initiative has taken a back seat despite directives for civil servants in 2019 to wear “Made in Kenya” outfits to work every Friday and during public holidays.
The CBK data shows that the government import bill has expanded significantly since July 2019 before dipping during the elections and hitting highs last year.
The main objective of the Buy Kenya-Build Kenya strategy is to increase competitiveness and consumption of locally produced goods and services.
It aims to promote and enhance the consumption of Kenya’s products and services in absolute figures and as a proportion of the gross domestic product.
The main commodities targeted in the strategy are agricultural products, construction materials, the textile industry, pharmaceutical and health products, furniture, and information and communication technology.
The Treasury admitted that domestic suppliers were frustrating a government directive that public agencies procure at least 40 percent of their consumable products locally, noting that the 'Buy Kenya, Build Kenya' initiative put in place nearly a decade ago had failed to hit the targeted levels.
The policy, which arose from a Presidential decree in June 2015, requires at least 40 percent of supplies to State ministries, departments, and agencies be sourced from local companies.
