- Rapid growth in imports outpacing exports and a slowdown in remittances from Kenyans abroad have resulted in a sharp fall in Kenya’s import cover. According to reports the import cover has plunged to the lowest levels in seven years.
Rapid growth in imports outpacing exports and a slowdown in remittances from Kenyans abroad have resulted in a sharp fall in Kenya’s import cover. According to reports the import cover has plunged to the lowest levels in seven years.
The latest Central Bank of Kenya data shows that the country’s foreign exchange reserves stood at $7.32 million indicating that the dollar reserves can cover the country’s import needs for 4.13 months. the lowest cushion since October 2015. Kenya’s import cover has since July dropped below the 4.5 months cushion recommended by the seven-nation East African Community bloc.
Due to currency volatility, it was reported that CBKhad to sell an unspecified amount of dollars to deal with the currency fluctuations. The shilling averaged 120.85 units against the US currency last week, reflecting the depreciation of 6.81 percent since the beginning of the year.
CBK Governor Patrick Njoroge told a press conference that Kenya’s imports rose by 25.96 percent year-on-year in the half-year period through June, while exports grew by 17.31 percent only. Diaspora remittances also showed a slow growth of 11. 44 percent against 19 percent during the corresponding period the previous year. He was confident that the trend was seasonal, and it will pick up in the next Quarter before Xmas.
Also read;
https://trendsnafrica.com/currency-fluctuations-deepen-kenyas-economic-crisis/
https://trendsnafrica.com/fuel-prices-set-to-increase-in-kenya-with-cut-in-subsidies/
