Kenya’s balance of payments surplus narrowed to KShs 84.1 billion in Q2 2024 from KShs 152.9 billion in Q2 2023, a significant improvement in the country’s trade position.
This positive trend was primarily driven by a narrower current account deficit, which decreased by 34.5% to KShs 104.1 billion, the Kenya National Bureau of Statistics (KNBS) has released the Q2 2024 Balance of Payments report.
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Current Account Balance |
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| Item | Q2’2023 | Q2’2024 | Y/Y % Change |
| Merchandise Trade Balance | (354.3) | (341.2) | 3.7% |
| Services Trade Balance | 27.4 | 43.6 | 59.1% |
| Primary Income Balance | (69.8) | (45.6) | 34.6% |
| Secondary Income (transfer) Balance | 237.7 | 239.2 | 0.6% |
| Current Account Balance | (159.0) | (104.1) | 34.5% |
All values in Kshs bns
During the period, merchandise exports grew by 10.9%, outpacing imports by 2.3%. In addition, the secondary trade balance increased by 59.1%.
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Kenya Balance of Payments |
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| Item | Q2’2023 | Q2’2024 | Y/Y % Change |
| Current Account Balance | (159.0) | (104.1) | 34.5% |
| Capital Account Balance | 4.9 | 8.0 | 64.4% |
| Financial Account Balance | 330.7 | 198.3 | (40.0%) |
| Net Errors and Omissions | (23.7) | (18.1) | 23.5% |
| Balance of Payments | 152.9 | 84.1 | (45.0%) |
All values in Kshs bns
However, earnings from investments abroad and labour services decreased by 34.6%.
While the financial account balance saw a decline, the overall balance of payments remained in surplus due to improvements in the current and capital accounts.
“Looking ahead, the outlook for Kenya’s current account is optimistic, as continued growth in key export sectors and sustained diaspora remittances are expected to further improve the current account balance. Efforts to diversify exports and enhance value addition in agricultural products, along with prudent fiscal and monetary policies, will be crucial in sustaining this positive trajectory. Furthermore, the ongoing strengthening of the Kenyan Shilling against most trading currencies is expected to lower the import bill hence narrowing the current account deficit,” Cytonn Investments says in commentary.