Kenya Quarterly Balance of Payments Second Quarter 2022

The country’s current account deficit widened by 9.7 per cent to KSh 174.4 billion in the second quarter of 2022 from KSh 158.9 billion in the same quarter of 2021 as shown in Table 1. Similarly, merchandise trade, a major driver of the current account, recorded a deficit of KSh 365.6 billion in the quarter under review, an increase of 34.6 per cent from the corresponding quarter of 2021. The marked increase in merchandise trade deficit was mainly occasioned by a 31.7 per cent growth in imports on f.o.b basis to KSh 594.3 billion, compared to a 27.4 per cent increase in exports to KSh 228.7 billion. Elevated oil prices increased the import value of petroleum products thereby pushing the import bill during the second quarter of 2022. Export earnings from tea increased on account of improved international prices due to increased demand during the quarter under review. Other drivers of growth in exports were coffee, and titanium ores and concentrates.