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Kenya’s current account deficit hit 5.2pc in November

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NAIROBI, Kenya Jan 22-Kenya’s current account deficit widened to 5.2 per cent in November compared to 4.7 per cent in the same period last year.

The weekly Central Bank of Kenya bulletin attributed the wider deficit to a higher import bill, particularly oil, which more than offset increased receipts from agricultural and services exports, and remittances.

The latest Leading Economic Indicators report by the Kenya National Bureau of Statistics(KNBS) reveals that the value of Kenya’s total exports decreased from Sh64.91 billion in October 2021 to Sh64.21 billion in November 2021.

On the other hand, the value of imports increased from Sh187.86 billion in October 2021 to Sh 191.81 billion in November 2021, the KNBS report highlighted.

A current account deficit is occasioned by high spending on imports compared to export earnings.

Kenya’s current account deficit touched a decade peak of 7.2 per cent of GDP in 2017 as the country dealt with election-related uncertainty.

The country has been witnessing shrunk earnings from the export market for the past 16 months on social-economic challenges brought about by the Covid-19 pandemic that saw international borders closed for close to four months in 2020.



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