Kenya’s current account deficit (CAD) is projected at 5.6 per cent of its gross domestic product (GDP) in 2022.
The current account deficit is estimated at 5.3 per cent of GDP in the 12 months to September 2022.
The Central Bank of Kenya says, “It is projected at 5.6 per cent of GDP in 2022 compared to 5.9 per cent previously estimated, on account of improved receipts from service exports and resilient remittances.”
According to the regulator, goods exports have remained strong, growing by 13.9 per cent in the 12 months to September 2022 compared to a similar period in 2021.
Receipts from tea and manufactured goods exports increased by 15.9 per cent and 26.0 per cent, respectively, during the period. The increase in receipts from tea exports reflects improved prices attributed to demand from traditional markets.
Imports of goods increased by 18.0 per cent in the 12 months to September 2022 compared to an increase of 12.6 per cent in the 12 months to September 2021, mainly reflecting increased imports of oil and intermediate goods.
Receipts from services exports increased, reflecting sustained international travel and transport improvement.
Remittances totalled USD3,996 million in the 12 months to October 2022 and were 10.9 per cent higher compared to a similar period in 2021.
The central bank raised its benchmark lending rate to 8.75 per cent on Wednesday to anchor inflation expectations.