KENYA CURRENT ACCOUNT DEFICIT DOWN

The current account deficit of Kenya dropped to 5.5% of GDP in 2016 from 6.8% in 2015 as imports of petroleum Products dropped alonside imports of machinery and transport equipment.

According to the fundamentals of the Kenyan economy released today January 30 at the end of Central Bank of Kenya's (CBK) monetary policy committee meeting, the trade balance was also helped by inflows from horticulture and tea products, higher tourism receipts and resilient diaspora remittances.

According to the CBK month on month inflation also decreased to 6.4% in December from November's 6.7% as the effect of the excise tax introduced in 2015 waned.

Food prices rose though in December especially the prices of tomatoes, sugar, cabbages and maize flour due to dry weather.

Kenya's foreign reserves, says the CBK closed 2016 at $6.936m, enough to cover four months imports and added to continued IMF support, should isolate me kenya from shocks from world market.

Also says the CBK, private sector credit stabilised at 43% in December 2016 driven by lending to trade, real estate, private households and consumer durables. It added that banks also reported expanded asset base   increased capitalisation and improved profitability.

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