Kenya’s total merchandise trade fell by KSh 24.7 billion in August 2026, reflecting a slowdown in both exports and imports, according to the latest Leading Economic Indicators report released by the Kenya National Bureau of Statistics (KNBS).
The report shows that the total value of merchandise trade declined from KSh 427.5 billion in July 2026 to KSh 402.8 billion in August.
Exports recorded a significant drop during the period, falling from KSh128.8 billion in July to KSh118.0 billion in August. Import expenditure also decreased, from KSh 298.7 billion to KSh 284.8 billion.
Domestic exports, which account for locally produced goods sold abroad, declined sharply from KSh107.1 billion to KSh93.8 billion. However, re-exports rose from KSh 21.7 billion to KSh 24.2 billion, partially cushioning the overall decline in export earnings.
The value of home-use imports also fell, dropping from KSh 202.7 billion in July to KSh 194.6 billion in August.
Uganda remains Kenya’s top export market
Uganda retained its position as Kenya’s leading export destination during the month, with exports valued at KSh13.2 billion. The United States and Pakistan followed at KSh 12.0 billion and KSh 6.5 billion, respectively.
Notably, exports to Uganda increased by 4.3 per cent from KSh12.6 billion recorded in July, highlighting sustained demand for Kenyan goods within the East African region.
Food and beverages remained the country’s biggest export category, accounting for 41.3 per cent of total exports in August. Industrial supplies excluding food contributed 24.7 per cent, while machinery and other capital equipment made up 9.3 per cent.
China leads as Kenya’s biggest import source
On the import side, China remained Kenya’s largest trading partner, with imports worth KSh83.3 billion. India ranked second with KSh64.3 billion, while Japan supplied goods valued at KSh12.3 billion.
Imports from India registered a notable increase of 14.7 per cent, rising from KSh 56.1 billion in July to KSh 64.3 billion in August.
Industrial supplies excluding food accounted for the largest share of imports at 37.9 per cent. Fuel and lubricants followed at 22.3 per cent, while machinery and capital equipment represented 13.2 per cent. Transport equipment contributed 10.5 per cent of total imports.
State of Kenya’s ICT-related trade
The KNBS report also points to a slowdown in ICT-related trade. Exports of ICT equipment dropped from KSh 319.0 million in July to KSh 266.7 million in August. The decline was primarily driven by a 64.7 per cent drop in exports of automatic data processing machines and storage units, which fell to KSh66.5 million.
Similarly, ICT equipment imports declined significantly from KSh 10.4 billion to KSh 6.9 billion. The reduction was largely attributed to a 51.7 per cent fall in imports of telecommunications equipment to KSh 3.0 billion.
Mobile money transactions hit KSh761 billion
Despite the decline in trade and ICT imports, Kenya’s mobile money sector continued to expand. The number of mobile money subscriptions increased from 94.4 million in July to 95.3 million in August. The number of transactions also rose from 221.1 million to 227.4 million.
The value of mobile money transactions climbed from KSh 728.7 billion to KSh 761.1 billion during the period, underscoring the growing reliance on digital financial services.
However, the number of active mobile money agents dropped from 575,400 in July to 563,600 in August, suggesting consolidation within the agency network even as transaction volumes increased.
The latest data paints a mixed picture of Kenya’s economy, with trade activity cooling in August while digital payments continued to register strong growth.
