Import of cereals eat into forex reserves

Central Bank of Kenya. file photo | nmg

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.

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