Uganda’s exports to Kenya decline by 65%, marking sharpest drop in six years
The decline in Uganda's exports to Kenya and Rwanda has been linked to trade barriers introduced by the two countries, reportedly aimed at shielding their local farmers from falling prices following strong harvests.
Uganda's exports to Kenya fell to $17.7 million (Sh2.3 billion) in March, signifying a 65 per cent decrease from the average monthly exports of $50 million (Sh6.5 billion), marking the biggest decline in six years.
According to data from the Bank of Uganda, Kampala's exports to Rwanda also dropped to $2.5 million (Sh323.6 million)during the period, down from an average of $20 million (Sh2.6 billion). Uganda's exports to Tanzania also dropped to $3.4 million (Sh440 billion), down from $13 million (Sh1.7 billion).
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The decline in Uganda's exports to Kenya and Rwanda has been linked to trade barriers introduced by the two countries, reportedly aimed at shielding their local farmers from falling prices following strong harvests.
As a result, maize and bean exports saw a nearly 60 per cent drop in value, according to Dr. Adam Mugume, Director of Research at the Bank of Uganda.
Meanwhile, South Sudan and the Democratic Republic of Congo became Uganda's leading export destinations, accounting for $53.5 million (Sh6.9 billion) and $47 million (Sh6 billion) worth of goods, respectively.
The United Arab Emirates (UAE) continued to be Uganda's largest export destination, generating $324 million (Sh41.9 billion) in March and totalling $3 billion (Sh388.3 billion) from April 2024 to March 2025.
Meanwhile, exports to China rose to $19.2 million (Sh2.5 billion), significantly higher than the monthly average of $8 million (Sh1 billion).
Uganda's informal exports in the period were also substantial, with DR Congo leading with Sh4 billion, followed by Kenya (Sh1.1 billion), Rwanda (Sh802.4 million), South Sudan (Sh608.3 million) and Tanzania (Sh582.4 million).
The total value of informal exports in March reached $56.2 million (Shs 7.3 billion), according to Dr Mugume.
To reduce the effects of trade restrictions, Dr Mugume suggests that Ugandan exporters try growing different types of crops and focus on those that have strong demand outside the region, like fruits and vegetables.
In 2024, Uganda's export sector showed strong growth, particularly in gold, coffee, and fish. Gold remained the top export, making up about 37 per cent of total export earnings with steady monthly revenues.
Coffee exports also increased significantly, thanks to higher global prices and reduced supply from major producers, leading to a notable rise in export volumes and earnings.
Fish exports similarly performed well, supported by strong demand from regional markets.
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