Kenya ranks behind Tanzania in economic diversity in East Africa, as the nation continues to rely on raw material exports rather than manufactured goods, according to a 2025 African Union report. The country scores below the continental average in trade sophistication, limiting job creation and industrial development that could reduce poverty levels.
Tanzania leads the East African Community with a diversification score of 0.4457, while Kenya trails with a weaker manufacturing export performance compared to its import volumes. The regional bloc scores 0.3920 in diversification, compared with an African average of 0.4072, with raw materials accounting for roughly 68 percent of exports.
The report recommends strengthening regional production networks through agro-processing and light manufacturing initiatives. Experts suggest that improving transport corridors connecting Mombasa and Dar es Salaam ports would deepen economic integration across member states.
The Southern African Development Community achieves the highest integration scores on the continent, performing 30 percent above average. Kenya anchors the East African Community economy, which falls in the middle tier alongside the Intergovernmental Authority on Development.
Tanzania leads the East African Community with a diversification score of 0.4457, while Kenya trails with a weaker manufacturing export performance compared to its import volumes. The regional bloc scores 0.3920 in diversification, compared with an African average of 0.4072, with raw materials accounting for roughly 68 percent of exports.
The report recommends strengthening regional production networks through agro-processing and light manufacturing initiatives. Experts suggest that improving transport corridors connecting Mombasa and Dar es Salaam ports would deepen economic integration across member states.
The Southern African Development Community achieves the highest integration scores on the continent, performing 30 percent above average. Kenya anchors the East African Community economy, which falls in the middle tier alongside the Intergovernmental Authority on Development.
