Port records sluggish flow of imports and exports in downturn

Zeddy Sambu

The volume of imports and exports through the port of Mombasa has dropped as Kenyan businesses come to terms with the real impact of the current global economic crunch.

Kenya’s main exporting destinations have reportedly scaled down orders for the country’s agricultural produce—the main foreign exchange earners, opting to buy light at auctions as opposed to contract orders for mainly tea, coffee and horticultural produce.

Importers say they are witnessing reduced flow of raw materials and machinery for use by Kenyan industries, that has rendered especially mid-sized enterprises to run at optimum levels.

The current heat on Kenya’s enterprises and entrepreneurs is particularly compounded by an unconducive business climate preceding the current global slow down.

Post-election turmoil arising from the disputed December presidential poll witnessed during the first quarter of 2008 followed a record double digit inflation levels that peaked at 31.5 per cent last May.

Pump oil prices also crossed the Sh100 mark, mid last year, pushing the standard of living higher, a move that made many consumers to shelve purchasing plans.

Source: www.bdafrica.com

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