Kenya’s Current Account Deficit sinks to 5.4% of the GDP in the 12 months to July 2021 compared to 4.9% of the GDP in the last 12 months to July, Central Bank of Kenya data.
Current Account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports. This will include the net income, such as interest and dividends, and transfers, such as foreign aid.
The current account represents a country’s foreign transactions and, like the capital account, is a component of a country’s balance of payments (BOP). In this case, Kenya spends more on imports than exports.
In a statement, the Central Bank stated that “The higher deficit was attributed to lower service receipts as well as high imports, which more than offset increased receipts from agricultural exports and remittances.”
Data by the Bank indicates that Kenya recorded a $5.5 billion current account deficit in June, down from $5.1 billion posted June last year.
In addition, the commercial banks’ foreign currency reserves have been falling, recording KSh13 billion last week from KSh13.2 billion the previous week.
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