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Discuss the performance of Kenya’s balance of payment since 2014 stating the indicators, factors affecting the Balance of payment and types

Institution: University

Course: Bachelor of Science in Economics

Content Category: Articles

Posted By: PETER NGARI

Document Type: DOCX

Number of Pages: 5

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ECO 313: INTERNATIONAL ECONOMICS 2 ASSIGNMENT:
1. Discuss the performance of Kenya’s balance of payment since 2014 stating the indicators, Factors affecting the Balance of payment and types.
a. PERFORMANCE OF THE KENYA’S BALANCE OF PAYMENT SINCE 2014
The Kenya’s balance of payment has been experiencing fluctuations. In 2015, the current account deficit improved to 7.2 percent in November 2015 from 10.7 percent in the November 2014 due to decline in the import payments despite declining export receipts.
In 2016, the Kenya’s balance of payment slipped into a deficit position following a drop in financial inflows, in the absence of the Eurobond and amidst low tourist numbers, wiping out gains of a lower import bill. In total The Kenya’s balance of payment had a deficit of Kenya shillings 6 billion in the year to November down from a surplus of Kenya shillings 87.2 billion a year earlier. This means there were more outflows from the country than receipts. The low earnings from the tourism sector contributed to the negative cash flow position.
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