Trade across the East African Community (EAC) picked up pace in the second quarter of 2025, hitting Ksh 4.93 trillion, up from Ksh 3.83 trillion in the same period last year.
The growth was largely fueled by exports, which surged by 40.5 per cent to Ksh 2.4 trillion (USD 18.6 billion), reflecting rising global demand for goods produced in the region. Imports also increased but at a slower rate, climbing 18.8 per cent to Ksh 2.53 trillion (USD 19.6 billion). The slower growth in imports helped narrow the trade deficit sharply, from Ksh 414 billion (USD 3.2 billion) a year earlier to Ksh 116 billion (USD 0.9 billion) in the quarter under review.
Trade with African countries outside the EAC grew strongly, expanding 42.9 per cent to Ksh 1.2 trillion (USD 9.3 billion), representing almost a quarter of total regional trade. Intra-EAC commerce also rose, with transactions among member states reaching Ksh 596 billion (USD 4.6 billion), up 24.5 per cent from the previous year. Meanwhile, trade with broader regional blocs, including COMESA and SADC, accounted for 9.9 per cent and 15.2 per cent of total trade, highlighting the region’s growing economic links across the continent.
China, the United Arab Emirates, South Africa, Hong Kong, and Singapore remained the largest destinations for EAC exports, collectively taking in 62.8 per cent of goods, up sharply from 40.1 per cent the previous year. Malaysia and South Africa registered the fastest quarterly growth among export partners.
The region’s export basket continues to be dominated by high-value commodities such as copper, precious stones and metals, coffee and tea, mineral fuels, and ores, which together accounted for nearly 80 per cent of total exports.
On the import side, China led the way, supplying Ksh 607 billion (USD 4.7 billion), or almost a quarter of all imports, followed by the UAE, India, South Africa, and Japan.
Petroleum products, machinery, vehicles, and precious metals made up the bulk of imported goods, reflecting the region’s industrial and infrastructural needs. Petroleum alone accounted for Ksh 531 billion (USD 4.1 billion), while machinery imports reached Ksh 232 billion (USD 1.8 billion), and vehicles and precious metals each stood at Ksh 194 billion (USD 1.5 billion). These imports underline the continued reliance on foreign inputs for industry, transport, and energy.
Despite the trade growth, inflationary pressures persisted across the region. Annual headline inflation stood at 22.7 per cent in June 2025, a modest drop from 24.0 per cent in May but still significantly higher than 13.7 per cent a year earlier.
South Sudan and Burundi recorded the most dramatic increases, with prices rising 179.4 per cent and 34.1 per cent, respectively. Core inflation, which excludes volatile food and energy prices, remained elevated at 19.3 per cent, pointing to persistent cost pressures across the economy.
Monetary trends showed mixed movements across EAC countries. Short-term interest rates increased in most member states, but Kenya saw its 91-day Treasury bill rate fall to 8.2 per cent. Lending rates also varied, declining in Kenya and Tanzania while rising in Uganda.
Credit to the private sector rose by 19.2 per cent, fueling an overall 19.1 per cent growth in the region’s money supply (M3) and signalling continued support for business activity.
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