Kenya's trade and tourism influenced by virus outbreak

A Chinese visitor feeds a giraffe in the Giraffe Center in Nairobi, Kenya, January 15, 2017. /VCG

As global shares tumbled on Tuesday over fears of a coronavirus pandemic, East Africa's biggest economy is bracing itself for a hit.

Cargo volumes at Kenya's port of Mombasa are expected to reduce in the coming weeks as the coronavirus outbreak continues to affect China's manufacturing and overseas trade.

Before the outbreak of the virus in December, orders for Kenyan goods to China were on an upward trajectory.

China is Kenya's largest trading partner, contributing 17.2 percent to Kenya's total trade.

The country exports mainlygoods, such as coffee, tea, titanium ores and plastics, and imports leather, rubber, machinery and transport equipment, and chemicals, among others.

Coffee, specialty tea, cut flowers and avocados are some of the farm produce which had gained market access to China.

Data by the Kenya National Bureau of Statistics shows China purchased goods worth 7.48 billion shillings in the first half of 2019, a 74.13-percent increase over the previous year.

This was largely down to aggressive trade promotion and marketing campaigns in China by the Kenya Export Promotion and Branding Agency, which aims at growing the market for Kenyan farm produce.

Speaking to a local daily, Nairobi Importers and Small Traders Association chairperson Samuel Karanja said its members have been forced to cut exports from China, and this will have an impact on the country's foreign inflows.

Before the outbreak, most small traders bought their goods from China, but with production almost at standstill, many are now seeking alternative markets with competitive prices.

The suspension of flights to China is also expected to cut Kenya's exports, hurting the country's economic growth in the short term.

The suspension of flights by national carrier Kenya Airways has also had a negative impact.

Last week, Kenya Airways acting CEO Allan Kilavuka said the airline had lost over 8 million U.S. dollars in passenger and cargo revenue in the past month on the Nairobi-Guangzhou route.

Another area likely to be affected is tourism. Available data from the government shows 81,709 arrivals from China in 2018, representing a 4.03-percent growth from the previous year.

The country's economy grew by 5.1 percent in the third quarter of 2019, a drop from 6.4 percent in the same period of the previous year, and there are warning signs that it may suffer from more shocks if the virus is not brought under control soon as small and medium-sized enterprises, the drivers of the economy, falter.