As at the end of the month, the gap stood at Sh473.98 billion ($4.66 billion) compared to Sh483.22 billion ($4.75 billion) in September and Sh522.92 billion in October 2017.
The gap hit a 12-month peak of Sh524.77 billion ($5.16 billion) last May before beginning a progressive decline to the latest published figure of Sh473.98 billion, Treasury data shows.
The gap between exports and import fell for the fifth consecutive month in the year to October, providing a stronger cushion for the local currency, official data shows.
As at the end of the month, the gap stood at Sh473.98 billion ($4.66 billion) compared to Sh483.22 billion ($4.75 billion) in September and Sh522.92 billion in October 2017.
The gap, also called the current account deficit, hit a 12-month peak of Sh524.77 billion ($5.16 billion) last May before beginning a progressive decline to the latest published figure of Sh473.98 billion, Treasury data shows.
“The current account balance improved to a deficit of $4,660.6 million (5.0 percent of Gross Domestic Product (GDP) in the year to October 2018 compared to a deficit of $5,141.8 million (6.5 percent of GDP) in the year to October 2017,” said the Treasury.
The improvement in the deficit was a result of strong growth of agricultural exports, increased diaspora remittances and strong receipts from tourism, among other factors.
“This improvement was supported by strong growth of agricultural exports particularly tea and horticulture, increased diaspora remittances, strong receipts from tourism, and lower imports of food and SGR-related equipment relative to 2017,” said the Treasury.
Even after the current account decline in the year to October, the Treasury further said it expected the deficit to fall further by the end of 2018, but the data is yet to be made public.
“It is expected to narrow further to 5.2 percent of GDP in 2018 from 6.3 percent in 2017,” said the Treasury.
The overall balance of payments was at a deficit of Sh135.66 billion as of last October compared to a surplus in the same month in the previous year – largely due to a decline in the financial account even as the current and capital accounts improved.
The capital account improved to Sh30.57 billion ($300.6 million) in the year to last October reflecting an increase in projected grants, the Treasury said.
This was an increase of Sh14.11 billion ($138.7 million) compared to the same month in the previous year.
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