Kenya’s current account deficit remains high, the Monetary Policy Committee (MPC) said on Wednesday.
The country’s current account deficit hit a record 4.8 per cent in the last fiscal year and has been a key parameter for the Central Bank of Kenya while setting monetary policy.
“The current account deficit is estimated at 5.2 per cent of GDP in the 12 months to April and is projected to remain at the same level in 2021,” the MPC said in a statement.
- Exports of goods have remained strong, growing by 5.5 per cent in the first 4 months of 2021 compared to a similar period in 2020.
- Significantly, receipts from exports of
horticulture and manufactured goods rose by 27.7 per cent and 33.9 per cent respectively, in the first 4 months of 2021 compared to a similar period in 2020.
- Receipts from tea exports declined by 5.6 per cent, reflecting the impact of accelerated purchases in 2020.
- Imports of goods increased by 15.2 per cent in the first 4 months of 2021 compared to a similar period in 2020, largely as a result of improvements in imports of intermediate
- Receipts from services exports remained subdued, mainly due to weaknesses in international travel and transport.
- Remittances were strong at USD299.3 million in April 2021 and were 23.3 per cent higher in the first 4 months of 2021 compared to a similar period in 2020.