Kenya faced trade difficulties as records indicates a trade deficit of sh.946.8 billion in 10 months ended on October this year. The deficit has been pushed by double increase of imports.
Statistics released by the Kenya Central Bank showed the trade deficit had greatly widened in the period 10 months to October amid slump growth in exports. The period indicated had experienced a double increase of food imports and buying of machinery from abroad, raising fear on the country’s continued reliance on other countries.
Reliance on the imported goods increased up to sh.1.5 trillion, putting a growth of 23%, while exports grew insignificantly 2.4% an equivalent of sh.498.3 billion.
The data also shows the gap between imports and exports hit a difference of sh.265.35 billion compared to last year in a similar period of time.
Central bank of Kenya was now facing the heat to maintain the current stability of the Kenyan currency, since the widening deficit is putting pressure on the Kenyan shilling against foreign currencies.