NAIROBI (Xinhua) --
Kenya plans to establish an export credit
guarantee scheme in order to reduce the country’s trade deficit,
a government official said on Thursday.
Julius Muia, the
Principal Secretary in the National Treasury, told a trade forum
in Nairobi that since Kenya liberalized its international trade
regime, imports have been growing at a faster pace compared to
exports leading to huge trade imbalance.
“We are planning to
introduce an export credit guarantee scheme so as to help local
producers to sell their goods and services in overseas markets,”
Muia said during the Kenya-Tanzania Trade Investment Forum.
Data from the
ministry of trade indicates that Kenya exported goods worth
approximately 6 billion U.S. dollars against imports of 17
billion dollars in 2017.
Muia said the export
credit guarantee scheme is likely to be introduced in the next
financial year which begins in July.
Muia said the scheme
will help to underwrite loans extended to those in the export
sector so that commercial banks are more comfortable to
extending financial supporter to exporters.
He said the scheme
will enhance access to finance for Kenya’s export oriented
producers who are in the manufacturing, agricultural and
He added that a key
constraint facing exporters is the lack of affordable credit to
expand their businesses to cover overseas markets.
Muia said other
beneficiaries of the scheme will be importers of raw materials
who intend to engage in value addition and then export finished