(Xinhua) -- Kenya’s current account deficit
is expected to narrow to 6.2 percent of the gross
domestic product (GDP) in December, down from 6.5
percent in September, the country’s apex bank said on
Patrick Njoroge, the Central Bank of
Kenya (CBK) Governor, told a media briefing in Nairobi
that the reduction will be mainly due to a slowdown in
“In the past two months, there has
been a slight decrease in Standard Gauge Railway imports
as well as improved weather conditions which have
reduced need for food imports,” Njoroge said.
The 12-month current account deficit
widened to 6.5 percent of GDP in September from 6.4
percent in July reflecting higher international oil
prices and continued import of food to mitigate the
adverse affects of the drought.
Njoroge said the country has been
experiencing increased financial flows since September.
“Strong diaspora remittances,
resilient inflows from tea and horticulture exports
and continued recovery in the tourism sector will
continue to support the current account going
forward,” he added.
According to the apex bank, the
country’s economic growth is expected to remain
resilient in 2017 despite the prolonged electioneering
Njoroge noted that foreign purchases
of equity at the Nairobi Securities Exchange outweighed
sales in October for the first time since April,
reflecting confidence in the economy.
He added that private sector credit
has maintained the upward trend since August with
notable credit growth in domestic trade, manufacturing
and the real estate sectors.