Government imports surge to Sh111 billion in 2024
The increase has been attributed to a weakened shilling in the first quarter of the year and continued demand for foreign goods.
The value of goods imported by government agencies surged to Sh110.9 billion in the year ending December 2024, marking the highest amount ever recorded.
The increase has been attributed to a weakened shilling in the first quarter of the year and continued demand for foreign goods.
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Data from the Central Bank of Kenya (CBK) indicates that the value of government imports rose sharply from Sh62.07 billion in the previous year.
The CBK data shows that at the beginning of 2024, the shilling was trading at Sh157.20 against the dollar, making imported goods more expensive.
While the CBK does not disclose specific details of the imports, common purchases by state departments and agencies include furniture, stationery, machinery, motor vehicles, textiles, and arms.
October 2024 recorded the highest monthly government import bill, hitting Sh24.8 billion.
January and February followed closely, with imports valued at Sh13 billion, largely due to the weak shilling. In contrast, December had the lowest government import value, standing at Sh2.3 billion.
The overall value of government and commercial imports increased from Sh2.59 trillion in 2023 to a record Sh2.7 trillion in 2024.
The data suggests that the current administration is importing more than its predecessor, despite calls to prioritise local products under the Buy Kenya-Build Kenya initiative.
Under President Ruto’s administration, state agencies imported goods worth Sh110.9 billion in 2024, a sharp rise from the Sh76.8 billion imported under Uhuru Kenyatta’s government in 2022 and Sh79.6 billion in 2021.
This comes despite past efforts to promote local manufacturing, including a 2019 directive requiring civil servants to wear “Made in Kenya” outfits every Friday and during public holidays.
CBK figures also indicate that the government’s import bill has been on an upward trajectory since July 2019, dipping slightly during the 2022 elections before rising again.
The Buy Kenya-Build Kenya initiative aims to boost the consumption of local goods and services, enhance competitiveness, and reduce reliance on imports. However, the latest data raises concerns over the effectiveness of these efforts.
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