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Kenyan President William Ruto raised eyebrows this week as addressed the economic disparities between Kenya and its neighbouring countries, Uganda and Tanzania, branding them as low-developed countries.
While meeting members of the Kenyan Diaspora in China, Ruto said these disparities have had an impact on Kenya's trade balance and the country's economic interests.
He explained that Kenya, which is classified as a middle-income country, faces disadvantages in trade due to its status.
“The difference between us and our neighbours is that Kenya is in the Middle-Income category. Our neighbours, Tanzania, Uganda and all the others are in the Least Developed Countries (LDCS). We are categorised higher than they are, and therefore, while they export duty-free, Kenya exports with a duty,” he said.
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This, he said, creates an uneven playing field for Kenya in terms of regional trade.
Ruto said the solution lies in Kenya entering into preferential trade agreements with its neighbours, which would level the playing field and ensure Kenya’s trade interests are safeguarded.
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Kenya’s Middle-Income Status and Economic Standing
Kenya’s economic performance places it in the middle-income category, with a GDP per capita of approximately $1,808 in 2023.
In contrast, Uganda and Tanzania are classified as lower-middle-income nations. Uganda's GDP per capita was approximately $956 in 2023, while Tanzania’s GDP per capita stood at around $1,224.
Despite this, both countries are striving to reach upper-middle-income status in the coming decades. Uganda has since reached the threshold for promotion to a middle-income status and is expected to cross over in 2027.