Provisional data released by the Central Bank of Kenya (CBK) showed that the current account deficit narrowed to 5.1 percent of GDP in the 12 months to July 2022 from 5.2 percent of GDP in the 12 months through to July 2021.
According to the CBK, the narrower deficit reflected improved receipts from service exports and remittances. Although the July current account balance improved, Kenya continues to run current account deficits. From a currency perspective, a persistent current account deficit has added downside pressure to the Kenyan shilling. The shilling has lost more than 6 percent YTD against the US dollar and repeatedly dropped to record lows this year.
