The Central Bank of Kenya (CBK) says the 12-month current account deficit also widened to 6.2 per cent of GDP in May 2017 from 6 per cent in March, due to short-term imports of cereals, sugar, and SGR-related transport equipment.
Analysts have noted payments for Eurobond were also due.
The country’s foreign exchange buffer thinned progressively in the lead-up to July due to outflows resulting from government payment for obligations.
The Central Bank of Kenya (CBK) says the 12-month current account deficit also widened to 6.2 per cent of GDP in May 2017 from 6 per cent in March, due to short-term imports of cereals, sugar, and SGR-related transport equipment. Analysts have noted payments for Eurobond were also due.
“The current account deficit is expected to narrow in the second half of 2017 in part due to resilient tea and horticulture exports, stronger diaspora remittances, and continued recovery in tourism,” said CBK governor Patrick Njoroge adding that the country has adequate foreign exchange reserves and the recent drop is no cause for alarm.
