Balance of payments estimates for the second quarter, that is April to June 2018 are presented in Table 1. Current account deficit narrowed to KSh 85.8 billion, in the second quarter of 2018 from KSh 130.4 billion in the second quarter of 2017. The net surpluses in the service and secondary income accounts contributed significantly to the narrowing of the current account deficit. The current account deficit was primarily brought about by larger increases in merchandise imports relative to exports. Merchandise imports valued on free on board (fob) basis grew by 7.6 per cent to KSh 437.1 billion while merchandise exports increased by 6.3 per cent to KSh 159.6 billion in the second quarter of 2018. Consequently, international merchandise trade balance deficit worsened by 8.3 per cent to KSh277.5 billion.
International trade in services inflows increased by 10.1 per cent to KSh 136.2 billion while outflows went up by 13.3 per cent to KSh 99.1 billion. In the secondary income account, remittances by Kenyans employed in the diaspora amounted to KSh 74.7 billion in the second quarter of 2018 from KSh 47.6 billion in the corresponding quarter of 2017.
The financial account net inflows declined to KSh 18.8 billion in the second quarter of 2018 from KSh 140.8 billion in the second quarter of 2017. This was on the back of decreased inflows coupled with increased debt securities outflows mainly in portfolio investments and other investments categories. In the second quarter of 2018, there was net use up of KSh 41.1 billion to the foreign exchange reserves. Gross official reserves stood at KSh 904.8 billion as at end of June 2018 from KSh 889.7 billion as at end of June 2017. Overall balance of payments position during the quarter review recorded a deficit of KSh 33.6 billion.Quarterly Balance of Payments Second Quarter, 2018
The country’s real Gross Domestic Product (GDP) is estimated to have expanded by 6.3 per cent in the second quarter of 2018 compared to 4.7 per cent during a similar quarter in 2017. The growth was against a backdrop of a fairly stable macroeconomic environment and favorable weather conditions. During the review period, the country experienced heavy rains that impacted positively on most of the agricultural and
generation of hydroelectricity activities.
Analysis by sector showed that activities of agriculture, and electricity and water supply recorded significant improvements to grow by 5.6 per cent and 8.6 per cent compared to growths of 0.8 per cent and 6.0 per cent, respectively during the second quarter of 2017. Accommodation and food service and Information and communication recorded the highest growths of 15.7 per cent and 12.6 per cent, respectively in the quarter under review. On the other hand, activities of the mining and quarrying and construction recorded the most notable deceleration in growths during the review period.Quarterly Gross Domestic Product Report Second Quarter, 2018
Kenya National Bureau of Statistics hereby releases monthly Consumer Price Indices (CPI) and rates of inflation, for September, 2018. These numbers were generated from a survey of retail prices that targeted a basket of household consumption goods and services. The exercise was conducted during the second and third weeks of the month, with prices being obtained from selected retail outlets in 25 data collection zones in Nairobi and in 13 other urban centers.
The CPI increased by 1.02 per cent from 192.18 in August 2018 to 194.14 in September 2018. The overall year on year inflation stood at 5.70 per cent in September 2018. Consumer Price Indices and Inflation Rates for September 2018
The Leading Economic Indicators highlights trends in Consumer Price Indices (CPI) and inflation, interest rates, exchange rates, international trade, agriculture, energy, manufacturing, building and construction, tourismand transport.
Consumer Price Index (CPI) decreased from 193.31 points in June 2018 to 191.59 points in July 2018. The overall rate of inflation rose slightly from 4.28 per cent to 4.35 per cent during the same period. In July 2018, the Kenyan Shilling appreciated against the major trading currencies except for the Sterling Pound and the Ugandan Shilling. The average yield rate for the 91-day Treasury bills, which is a benchmark for the generaltrend of interest rates decreased slightly from 7.87 per cent in June 2018 to 7.69 per cent in July 2018, while
the inter-bank rate rose from 5.03 per cent in June 2018 to 5.06 per cent in July 2018.
The Nairobi Securities Exchange (NSE) 20 share index increased from 3,286 points in June 2018 to 3,320 points in July 2018, while the total number of shares traded dropped from 453 million shares to 323 million shares during the same period. The total value of NSE shares traded decreased from KSh 13.69 billion in June 2018 to KSh 9.74 billion in July 2018.
Broad money supply (M3), a key indicator for monetary policy formulation, increased from KSh 3,242.94 billion in June 2018 to KSh 3,258.99 billion in July 2018. Gross Foreign Exchange Reserves increased from KSh 1,221.83 billion in June 2018 to KSh 1,235.33 billion in July 2018. Net Foreign Exchange Reserves deceased from KSh 760.51 billion in June 2018 to KSh 759.29 billion in July 2018.