NAIROBI, Kenya, Jan 3 – Kenya’s account deficit widened by 5.5 per cent to Sh193.4 billion in the third quarter of 2022 from Sh183.4 billion in the corresponding quarter in 2021 as the country’s import bill widened, the latest KNBS data shows.
During the third quarter of 2022, the country’s export earnings grew by 29.7 per cent to Sh228.2 billion while the import bill increased by 20.8 per cent to Sh601.2 billion over the same period.
“The increase in import expenditure was largely due to growth in imports of petroleum products during the quarter under review, despite the sustained reduction in the price of crude oil in the global market in the preceding months,” said the Kenya National Bureau of Statistics(KNBS).
Murban oil prices per barrel reached USD 82.26 on September 27 from a high of USD 130.24 on March 9.
According to the Quarterly Balance of Payments report, the main driver in the growth of exports was increased export earnings from tea.
In the period under review, receipts from international trade in services went up by 66.0 per cent while services payments increased by 46.0 per cent.
Consequently, the balance in international trade in services more than doubled from a surplus of Sh22.5 billion in the third quarter of 2021 to a surplus of KSh 59.2 billion in the corresponding quarter of 2022.
“Receipts from transport and travel services continued to support the surplus in trade in international services,” said KNBS.
Diaspora remittances remained resilient, increasing by 7.7 per cent to KSh 114.3 billion in the third quarter of 2022 despite a decline in quarterly flows reflecting seasonality.
During the third quarter of 2022, revenue from domestic exports was valued at Sh200.5 billion, reflecting an increase of 25.4 per cent from the corresponding quarter of 2021.
This was largely driven by increased domestic exports of tea; coffee; and animal and vegetable oils which jointly accounted for 47.0 per cent of the increase.
Earnings from domestic exports of tea recorded an increase of Sh12.6 billion from the third quarter of 2021.
This was largely attributable to an increase in export quantities coupled with improved tea prices in the international markets.
The price of tea increased from Sh221.7 per kilogramme in the third quarter of 2021 to Sh293.8 per kilogramme in the third quarter of 2022.
Expenditure on imports rose from Sh541.8 billion in the third quarter of 2021 to Sh661.8 billion in the third quarter of 2022.
The significant growth was largely attributable to an increase in imports of petroleum products and chemical fertilizers which more than doubled during the period under review.
The value of imported petroleum products rose from Sh82.3 billion in the third quarter of 2021 to Sh 182.6 billion in the third quarter of 2022 while that of imported chemical fertilizers rose from Sh8billion to Sh12.6 billion, over the same period.
