Generation Kenya - Kwani Project
Written by Kwani · February 25, 2008
In 2007, a group of Kenyans decided to start thinking about ways in which our country’s demi-centenary, in 2013, could be approached. We thought that one of the ways in which it is important to mark Kenya’s 50th Birthday is by telling the inspiring story of Kenyan achievements in the last fifty years. We wanted to celebrate ordinary every-day heroes, in a variety of fields of endeavour who have taught us and challenged us as Kenyans, by their lives. Indeed, we would focus specifically on those Kenyans whose life-spans have mirrored that of this wonderful country of ours: Kenyans born since 1963. We would document these lives through beautiful fine art photographs, and attempt to put down a record of our times through the recounting of these extraordinary and well-lived Kenyan lives in well written socio-biographies by professional writers. This was the idea behind GenerationKenya, the project.
Then the elections took place, and the associated chaos erupted. It is clear that it is no longer enough merely to celebrate Kenyan lives, although that is extremely important to do: we must now also use all means at our disposal to present to our country again the case for the importance and beauty of Kenya as a viable historical project. We need, as Kenyans, to recall our national identity. Kenyans need to be reminded of the good within us, of our achievements, of our capacity to overcome problems and challenges with determination. The new and critical importance of Generation Kenya and the opportunity it provides for Kenyans to start up a national conversation about our lives, our values, the people we admire and the qualities of our leaders cannot be overstated. It is time for Kenyans to re-think ourselves and our lives, and GenerationKenya provides a nation-wide chance to do just that.
A nation-wide hunt using print, broadcast media and the internet, aims to shortlist a series of outstanding Kenyans; and a panel of judges will select the finalists, in a series of nine categories covering arts and entertainment, environment, and conservation, business, information technology, media and communications, science, human rights and governance, sports, social justice, gender equality, architecture and planning.
In addition to a photographic exhibition which will visit major Kenyan cities in 2008, a website showcasing the portraits and biographies will open the project to a worldwide audience. DVD’s, publications and 45 trees planted in honour of nominees will complete the series of events planned for this year, after which the exhibition will be placed in the Kenya National Archives.
GenerationKenya is a Kwani Trust Research, Documentation and Archive Project, whose purpose is to document and showcase Kenyan achievements and Kenyan lives.
affecting that areaffecting thaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process at area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process a, which is a cotton-growing zone.
2.2 Why success
Success in inflaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have beaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process en a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process uenciaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process ng policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climaaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process te
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process
affecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process
affecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through taffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process he realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groupaffecting that area, which is a cotton-growing zone.
2.2 Why success
Success in influencing policy is attributed to various factors
a) Window of Opportunity
For policy research results to be of policy relevance, it is important to seize windows of opportunity. For
example, it was through the realization that the cotton textile industry had the potential to maximize benefits
arising from the African Growth and Opportunity Act (AGOA) initiative that addressing policy issues in the
sector became a major policy concern. It also proved to be a potential sector for the government to push its
agenda of increasing income and employment levels in the country.
b) Interest Groups
Interest groups play a significant role in agenda setting. For example, some KIPPRA research activities
have been a response to on-going debate on specific issues of concern to interest groups. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process s. KIPPRA
captures such opportunities to give objective view on issues identified.
c) Political Climate
During the single party politics (1963-1992), decision-making was vested on politicians and policy makers.
This was an impediment to policy implementation even where good research had been done. With
multiparty politics, the Kenyan citizenry is now conscious and able to demand good policies from
government. Institutions are becoming more transparent and accountable. The new NARC government
elected in 2002 is highly supportive of research and welcomes objective policy advice. It is open to
stakeholders in the policymaking process
TABLE OF CONTENTS
1. FOREWORD…………………………………………………. 3
2. MONETARY STATISTICS…………………………………. 4
2.1 The Banking Survey………………………………….. 4
2.1.1 Analytical framework………………………………… 4
2.1.2 Sources of data………………………………………. 5
2.1.3 Key concepts…………………………………………. 6
2.1.4 Compilation………………………………………….. 7
2.2. Other Summary Tables ……………………………… 12
2.2.2 Weighted interest rates……………………………….. 12
2.2.3 Sectorized credit to private sector…………………… 12
2.2.4 Notes and coin in circulation………………………… 13
3. GOVERNMENT FINANCE STATISTICS……………….. 14
3.1 Major reports compiled……………………………… 14
3.2 Terminology……………………………………………. 14
3.3 Credit to Government Table………………………… 15
3.3.1 Analytical Framework………………………………… 15
3.3.2. Sources of data……………………………………….. 16
3.3.3 Compilation…………………………………………… 17
3.4 Deficit financing ………………………………………. 18
3.4.1 Sources of data……………………………………….. 18
3.4.2 Compilation…………………………………………… 18
3.5 Government domestic debt ………………………… 19
3.5.1 Analytical framework………………………………… 19
3.5.2 Sources of data………………………………………. 19
3.5.3 Compilation………………………………………….. 20
3.6 Domestic interest payments ……………………….. 21
3.6.1 Sources of data………………………………………. 21
3.6.2 Compilation………………………………………….. 22
4. BALANCE OF PAYMENTS STATISTICS ……………… 24
4.1 Balance of Payments Statement ………………….. 24
4.1.1 Analytical framework………………………………… 24
4.1.2 Sources of data………………………………………. 26
1
4.1.3 Compilation…………………………………………… 30
4.2 Commodity market reports ………………………… 34
4.2.1 Sources of data………………………………………. 34
4.2.2 Compilation………………………………………….. 35
4.3 Merchandise Trade …………………………………… 36
4.3.1 Sources of data………………………………………. 36
4.4 Foreign Currency Receipts and Payments ……… 36
4.4.1 Sources of data……………………………………… 36
4.4.2 Compilation………………………………………….. 37
4.5 Monetary Movements ………………………………. 37
4.5.1 Analytical framework………………………………… 37
4.5.2 Sources of data………………………………………. 38
5. REAL SECTOR STATISTICS …………………………….. 41
5.1 Major Reports …………………………………………. 41
5.1.1 Sources of data………………………………………… 41
5.1.2 Compilation……………………………………………. 41
6. GRAPHICS AND DATA STORAGE ……………………… 45
Charts, sources of data, software used and data storage
7. APPENDICES ………………………………………………… 47
APPENDIX A: Sources of data and their uses…………….. 47
APPENDIX B: Flow chart for sources of data within CBK.. 53
APPENDIX C: Flow chart for external sources of data…… 54
2
1. FOREWORD
Functionally, Research Department can be split into two broad divisions,
namely, economic analysis and statistics collection and compilation,
with the economic analysis effort being geared towards achieving the
core function and the statistics collection and compilation serving the
needs of the economic analysts in the department.
Economic and Financial Statistics Division handles all matters related to
collection and compilation of statistics. This function is largely routine
employing both internationally accepted methods, concepts and also
domestic conventions. New members of staff in the Division are trained
on the job to know the sources of the primary data and to become
proficient in producing the necessary statistical reports.
This booklet on sources and methods should be useful to a new
member of staff in the Division and users of our statistics. The booklet
describes sources of data and compilation of the major reports produced
by each section in the Division. These include, inter alia, the Banking
Survey, Credit to Government and Balance of Payments Statement.
The booklet deals also with compilation of inflation and for the major
tables and charts that appear in our publications, identifies the sources
of data and where they can be accessed in the Graphics and Data
Storage Section of the Division.
As a first attempt in describing sources and methods, the booklet
deliberately concentrates on the major reports. Sources and methods
for other reports which are not covered here will be included in the
booklet in later revisions if it becomes necessary.
3
2. MONETARY STATISTICS
2.1 THE BANKING SURVEY
The banking survey, the main monetary statistics report, is a consolidated
sectorised accounts of the Central Bank of Kenya and institutions
registered under the Banking Act.
It facilitates the analysis of the monetary aggregates that are most
influenced by the monetary authorities and that play the most important
role in determining output, prices and the balance of payment.
2.1.1 Analytical Framework
???? Net Foreign Assets (NFA)
Net foreign assets (CBK/Govt)
Net foreign assets (Banks and NBFIs)
???? Net Domestic Assets (NDA)
Domestic credit
Credit to government (Net)
Credit to other public sector
Credit to private sector
Other items Net
Other items net (CBK)
Other items net (Banks and NBFIs)
???? Money Supply (M3X) (M3 plus resident forex deposits)
M3 (M2 plus private sector deposits with NBFIs)
M2 (M1+M0 plus private sector quasi - monetary
deposits with banks)
M1 (M0 plus private sector demand deposits with
banks)
M0 – currency outside banks
Resident foreign currency deposits (X)
4
2.1.2 Sources Of Monetary Data
Data for compiling monetary statistics is obtained from different
sources.
Central Bank Of Kenya
Finance Department
???? Report CBK 88 – The balance sheet of Central Bank of Kenya
???? Daily Trial Balance report- shows the detailed accounts of CBK on
a daily basis.
Financial Markets
???? Foreign assets position report shows the foreign assets and
liabilities of CBK at current exchange rates.
???? Report FX shows the daily forex receipts and payment by CBK.
National Debt Office
???? Report showing the Repo purchases by CBK
Banking Division
???? Summary of cash holdings (per denomination) by cashiers at the
last working day of the month.
???? Management report showing the daily summary of accounts at
banking office
???? Daily money market report showing the inter-bank borrowings
and lendings
Currency Division
???? Report showing daily currency in circulation figure.
???? Report showing the currency in circulation per denomination at
the last working day of the month.
Commercial Banks
Commercial banks submit the CBK BS(M) return constituting the
following tables as at the end of every month:
Table A – balance sheet
Table B – analysis of deposits
Table C – analysis of loans and advances to the private sector.
Table D – analysis of mortgage loans and advances
Table E — analysis of agricultural credit
Table F – deposits and lending rates
5
Non-Bank Financial Institutions
Non-bank financial institutions submit the CBK BS(M) return
constituting the following tables as at the end of every month:
Table A – balance sheet
Table B – analysis of deposits
Table C – analysis of loans and advances to the private sector.
Table D – analysis of mortgage loans and advances
Table E — analysis of agricultural credit
Table F — deposits and lending rates.
Besides the above tables, banks and NBFIs are required to submit
Tables A and B as at the 10th and 20th day of every month. These are
used to compile banking survey position figures for these dates. These
surveys are considered ‘estimates’.
International Monetary Fund (IMF)
The Reserve Position in the Fund figure forms part of our foreign assets
and is obtained from the web site of the IMF.
Crown Agents Financial Services Limited
Government deposits with Crown Agents which is a component of
NFA of the banking survey is obtained from the Balance of Payment
Section of Research Department. This section obtains the same from a
statement of accounts submitted to the Department by the Crown
Agents who are the Government’s agents in UK.
2.1.3 Key Concepts
Net Foreign Assets (NFA) – Refers to net worth of claims on nonresident
sector.
Net Domestic Assets (NDA)- Refers to net resident sector credit to
the economy.
Money Supply (M3X) - Refers broadly to M3X which is private sector
deposits and currency outside banks.
NFA + NDA = Money Supply, M3X
6
2.1.4 Compilation
Net Foreign Assets (NFA)
The NFA of the banking system is the sum of NFA of CBK and Banks
and NBFIs. The NFA of CBK includes government foreign currency
deposits with Crown Agents and Reserve Position in the Fund.
NFA of CBK is computed as the sum of:
???? Gold and foreign exchange
???? Reserve Position in the Fund
???? Deposits with Crown agents
LESS
???? Foreign liabilities of CBK
NFA of Banks and NBFIs
ADD
???? Foreign assets (from the consolidated balance sheets of both banks
and NBFIs)
???? Non resident local currency loans and advances
LESS
???? Foreign liabilities(from the consolidated balance sheets of both
banks and NBFIs)
???? Non-resident local currency deposits
Domestic Credit
Credit To Government from:
CBK
ADD
???? Treasury bills and bonds held
???? Overdraft to government
???? Uncleared effects
???? IMF funds on-lent to government
LESS
???? Government deposits at CBK
???? Reserve position in the Fund
???? Deposits with Crown Agents
Banks and NBFIs
ADD
???? Portfolio investments in government securities
???? Central government bills and notes discounted
???? Advances to central government
7
LESS
???? Government deposits as reported in the consolidated banks and
non-banks balance sheets
Credit To Other Public Sectors from:
Banks and NBFIs
ADD
???? Portfolio investments with local government, Financial and Nonfinancial
public enterprises notes.
???? Bills and Notes discounted in favour of local government, Financial
and Non-financial public enterprises.
???? Advances to local government, Financial and Non-financial public
enterprises.
LESS
???? Local government deposits with commercial banks and NBFIs.
Credit To Private Sectors from:
CBK
CBK advances credit to the private sector in form of loans to staff.
Banks and NBFIs
ADD
???? Placements with institutions other than banks and non-banks,
???? Portfolio investments with other entities other than the central
government and other public sectors,
???? Bills and notes discounted in favour of other entities other than the
central government and other public sectors
???? Loans and advances to other entities other than the central
government and other public sectors and banks and NBFIs.
Note:
Loans and advances to residents in foreign currency form part of
banking system private sector credits whereas non-residents local
currency loans and advances form part of foreign assets.
Money Supply, M3X
Made up of:
Currency outside banks given as
???? Currency in circulation
LESS
???? Commemorative coin,
???? Cash in tills of banks and NBFIs.
Other deposits at CBK comprising of:
8
???? deposits of banks in liquidation,
???? special projects deposits and
???? other impersonal accounts.
Private sector deposits with banks and NBFIs.
The deposits in money exclude those of central government, local
government, commercial banks, NBFIs and non-residents.
M0 is computed as:
Currency in circulation
LESS
???? Till cash with banks
???? Commemorative coin
M1 is computed as:
ADD
???? M0
???? Demand deposits with banks
???? Other deposits at CBK
M2 is computed as:
ADD
???? M1
???? Quasi (Term) deposits with banks
M3 is computed as
ADD
???? M2
???? Quasi deposits with NBFIs
???? NBFIs deposits with banks
LESS
???? cash in till of NBFIs.
M3X is computed as
ADD
???? M3
???? Resident foreign currency deposits.
M3XT is computed as
ADD
???? M3X
???? Non-bank public holdings of government papers.
9
Non-bank public holdings of government paper is obtained as follows:
Total domestic credit to government (from Credit to Government
Table compiled by Government Finance Section of Research
department) LESS credit to government from the banking system.
M3XT is strictly not a banking survey item because of the Nonbank
public holdings of government paper.
Other Items Net
Composed of all other liabilities of the banking system other than
Deposits and foreign liabilities LESS all other assets other than
placements, bills and notes discounted and loans and advances.
Note: Net Domestic Assets is computed as
Domestic Credit
LESS
Other Items Net
Constant Exchange Rate Banking Survey
For purposes of monitoring performance of monetary policy while
controlling the effects of exchange rate shifts, it is necessary to compile
a banking survey at a constant exchange rate. Currently, the constant
exchange rate is based on the US dollar exchange rate ruling at the
end September, 2001. Compilation of this survey is largely similar to
the compilation described in the foregoing except for the following
differences which are worth noting.
The two major components of the constant exchange rate banking
survey namely the sectorized CBK balance sheet and the banks and
NBFIs survey are compiled and presented separately. The banking
survey is obtained by consolidating the two components by netting
out intra-banking system balances.
The Sectorised Central Bank balance sheet
???? Net foreign assets of the Central Bank
This figure is obtained from CBK analytical balance sheet
computed by Research Department on a daily basis. The figure
excludes the Reserve position in the Fund and government
deposits with Crown Agents.
10
???? Credit to banks from CBK
The figure is obtained from the daily Central Bank balance sheet
where it is referred to as advances and discounts. This figure is
net of REPO sales by CBK and hence different from the
advances and discount figure reported in the CBK 88.
The Banks and NBFIs Survey
???? Government securities held by banks and NBFIs
The figure on total government securities held by banks is
obtained from National Debt Office records. For NBFIs, the
figure is obtained from the consolidated CBK BS(M) return for
NBFIs.
???? Credit to CBK
The figure is similar but reverse to the credit to banks from CBK
shown in the Central Bank sectorised balance sheet.
Non-bank public holding of government securities
The amount of government securities held by non-bank public is
obtained by working out the difference between total credit to
government from domestic sources and that sourced from banking
institution only. It is important to note that the figures for the nonbank
public holding of government securities in the normal banking
survey and that given in the constant exchange rate survey are
usually not the same as a result of differences in definition and
sources of data.
First, credit to government in the normal banking survey is net of:
???? Reserve position in the Fund (Contra to government foreign
assets)
???? Government deposits with Crown Agents (Contra to
government foreign assets)
Secondly, banks’ holdings of government securities in the normal
banking survey is sourced from the CBK BS (M) return as reported
by banks while that in the constant exchange rate survey is sourced
from National Debt Office.
11
2.2 OTHER SUMMARY TABLES
2.2.1 Weighted interest rates.
Deposits and lending rates for each bank are reported in Table F of
the CBK BS (M) return. To obtain a representative rate for all the
banks, weighted average rate is compiled.
???? Weighted deposit rate (for a particular maturity) is the sum of
individual bank’s weighted deposit rates. To illustrate, consider
deposits of 0-3 months maturity and let d be a bank’s total deposit
and D be the total deposit for all the banks for which a rate for 0 –
3 months deposits has been reported. If r is the nominal rate the
bank is offering, then the bank’s weighted rate rw = d x r. The sum
D
of rw for all the banks is the weighted interest rate for deposits of 0 –
3 months maturity.
???? Weighted lending rate (for a particular maturity) is the sum of
individual bank’s weighted lending rates. Computation of weighted
lending rate is similar to the computation illustrated above for
deposit rates. In this case however, total loans and advances are
used in place of deposits.
2.2.2 Sectorised credit to Private sector – “SUMARR” FILE
The sectorized credits to the private sector are captured in Table C of
the consolidated CBK BS(M) return. However the total figure in this
table must be equal to the sum of the loans and advances and bills
and notes discounted to the private sector in Table A of banks and
NBFIs return.
When compiling the “SUMARR” file, figures are obtained from Table
C for each sector. However, the sectorial classification in “SUMARR”
file does not exhaust all the sectors given in Table C. Those sectors
not identified in “SUMARR” are reclassified as ‘other activities’ and
credit to the sector is computed as a difference between the total
private sector credit from Table A and credit to the sectors identified
in the “SUMARR” file. The “SUMARR” file is structured as below.
Claims on private sector
Agriculture
Manufacturing
Trade
Exports
12
Imports
Domestic
Building & construction
Transport & communication
Finance and insurance
Real estate
Mining and quarrying
Private households
Consumer durables
Business activities
Other activities
2.2.3 Notes and Coins in Circulation
This report is compiled from reconciled currency holdings return as at
the end of every month from Currency Office in the Banking
department.
13
3. GOVERNMENT FINANCE STATISTICS
MAJOR REPORTS COMPILED
???? Credit to government (compiled on a daily basis)
???? Deficit financing (compiled on a daily basis)
???? Government domestic debt (compiled on a daily basis)
???? Domestic interest payments (compiled on a weekly and monthly
basis).
Consist of two reports namely; Discount on Redemptions and
Discount on new issues
3.1 Terminology
Revenue (R)
The Government finances its activities primarily by collecting taxes or
other compulsory charges. For purposes of fiscal analysis, revenue is
classified as tax or non-tax. Tax revenue comprise import duty, excise
duty, income tax and value added tax (VAT). Non-tax revenue
comprise investment income, appropriations in aid (AIA), external
grants and other revenue comprising mainly of traffic, land, airport,
wildlife and tourist revenues, licence fees, fines and forfeitures. Grants
are voluntary funds received by the government from other
government units or international organisations. According to the
IMF’s Government Finance Statistics manual (GFS, 2000), only
grants from foreign governments and international organisations
appear in the budget out-turn. AIA refers to revenues generated by
ministries by way of charging fees for their services to the public.
Proceeds related to privatisation of government institutions like
license fees are also classified under revenue. Proceeds from sale of
government shares in public enterprises are classified under financing
as the receipts are intended to help reduce public debt.
Expenditure (E)
Government expenditure consists have recurrent and development
expenditures. Recurrent expenditure refers to expenditures incurred
consistently (e.g. monthly). It consists of domestic interest payments,
foreign interest payments, wages and salaries, pensions and other
recurrent expenditures the bulk of which are for maintenance and
operations in the public sector. Development expenditure refers to
14
expenditures incurred on development projects. It also includes
government guaranteed lending to public entities.
Deficit/Surplus (R-E)
When expenditure exceeds revenue (inclusive of grants), then a deficit
results. Conversely, when revenue exceeds expenditure, we have a
surplus.
Deficit on commitment basis
This is the deficit derived using expenditure the government is under
obligation (committed) to finance.
Deficit on cash basis
This is the deficit derived using the actual expenditure the government
has financed. It is the deficit on commitment basis adjusted for
unsettled claims on the government. Cash basis takes into account
stocks of funds paid in advance, expenditure arrears and cash in the
main government account, which is the Paymaster General (PMG).
Financing the deficit
The budget deficit can be financed through external borrowing,
domestic borrowing and sale of government shares in parastatals
(privatisation). External borrowing consists of government borrowing
from multilateral organisations, for example, the IMF and World Bank,
other countries (bilateral) and external commercial banks. Domestic
borrowing consists of government borrowing from the domestic money
and capital markets for example through treasury bills and bonds and
also through loans and advances from banking institutions. Note that
proceeds from sale of government shares in parastatals form part of
financing as opposed to a revenue item.
Statistical discrepancy
The difference between deficit on cash basis and total financing is
referred to as statistical discrepancy. If there is no statistical
discrepancy, total financing is equal to deficit on cash basis.
3.2 CREDIT TO GOVERNMENT TABLES
3.2.1 Analytical framework
???? Credit from CBK
o Government securities at cost
o Government overdraft
o Items in transit
o IMF funds on-let to the government
15
o Net out government deposits at CBK
???? Credit from commercial banks
o Government securities at cost
o Direct advances to the government
o Net out government deposits in banks
???? Credit from Non-banks
o Credit from financial institutions
???? Government securities at cost
o Credit from insurance companies
???? Government securities at cost
o Credit from building societies
???? Government securities at cost
o Credit from parastatals
???? Government securities at cost
???? Credit from Non-residents
o Government securities at cost
???? Net out advances by Treasury to parastatals
3.2.2 Sources of data
Government overdraft and deposits at CBK are obtained from
the management report by account (M2 report) produced by Banking
Department on a daily basis. End month figures are confirmed against
figures published by Finance Department in the Central Bank of Kenya
balance sheet (CBK 88).
Stock and holders of treasury bills (at cost) data are obtained
respectively from the stock of outstanding treasury bills report and the
treasury bills paid up report for successful bidders both prepared by
National Debt Office, Financial Markets Department.
Stock and holders of treasury bonds (at cost) data are obtained
respectively from the stock of outstanding treasury bonds report and
treasury bonds paid up report for successful bidders both prepared by
National Debt Office.
Stock and holders of government stocks data are obtained
respectively from the stock of outstanding government stocks report and
the government stocks paid up report for successful bidders both
prepared by National Debt Office.
Government deposits in commercial banks and advances to
the government by commercial banks are obtained from the
consolidated commercial banks’ balance sheet (table A) prepared on a
monthly basis by Monetary Statistics Section, Research Department.
16
The stock and holders of tax reservation certificates (TRCS)
data is obtained from exchequer returns prepared by the Treasury.
Capital receipts (privatisation proceeds) data is obtained from
the management report by account (M2 report) produced by Banking
Department on a daily basis. Only proceeds derived from sale of
government shares in parastatals are considered privatisation proceeds.
Other proceeds related to privatisation (such as license fees) are
counted as revenue in the budget out-turn.
IMF funds on lent to the government are obtained from the CBK
88 published by Finance Department on a monthly basis.
Frozen government accounts (debt) data is obtained from the
CBK 88 on a monthly basis. Frozen government. accounts consist of
sterilised account, Repo Treasury bills account and monetary policy
suspense account. Frozen government accounts are compiled daily
using the money market report. Repo Treasury bills form part of the
stock of treasury bills.
3.2.3 Compilation
Consists of credit from Central Bank of Kenya (CBK), commercial
banks, non-bank financial institutions, National social security fund
(NSSF), other parastatals, non-residents, advances by Treasury to
parastatals and other investors.
Credit from CBK consists of overdraft, cleared items awaiting
transfer to PMG, IMF funds on let to the government, frozen
account, treasury bill rediscounts and is net of govt. deposits at
CBK.
Credit from commercial banks consists of commercial bank
advances to the government, commercial bank holdings of
government securities (at cost) (i.e. long term stocks, floating rate
bonds, fixed rate bonds and treasury bills) and is net of government
deposits in commercial banks.
Credit from non-residents consists of non-resident holdings of
government securities (at cost) (i.e. treasury bills, floating rate
bonds and fixed rate bonds).
17
Credit from non-bank financial institutions1, NSSF, other
parastatals and other holders consist of their holdings of
government securities (at cost) (treasury bills, stocks, and treasury
bills) and tax reservation certificates (TRCs).
Credit to government is net of advances by treasury to parastatals
(NCPB, C and SFC and other parastatals).
Capital receipts within the fiscal year are also captured though
they do not constitute the net credit to the government.
Credit to government tables also record memorandum items consisting of
stocks of treasury bonds (fixed rate, floating rate and special bonds),
treasury bills, long-term stocks and frozen government accounts excluding
repo treasury bills.
3.3 DEFICIT FINANCING
3.3.1 Sources of data
???? External financing data (including external
disbursements and
repayments) is obtained from the budget out-turn prepared by
the
Treasury on a monthly basis.
???? Credit to government table above.
3.3.2 Compilation
Consists of external financing, domestic financing and financing due to
privatisation.
External financing consists of external loan disbursements net of
external loan repayments for the month. The figures are cumulative
from the start of the financial year in July.
Domestic financing is derived from the credit to government table
as flows from June in the previous financial year. It consists of
financing from non-banks, banks (including CBK) and nonresidents.
Financing due to privatisation consist of actual inflows of proceeds
from sale of government shares in parastatals. The figure is derived
1 Non-bank financial institutions include some institutions that are registered under the Banking Act
(Specified financial institutions).
18
as a flow from the start of the fiscal year in June using capital
receipts in the domestic credit table.
3.4 Government Gross Domestic Debt
3.2.2 Analytical framework
???? Debt owed to CBK
o Government securities at face
o Government overdraft
o Items in transit
o IMF funds on-let to the government
???? Debt owed to commercial banks
o Government securities at face
o Direct advances to the government
???? Debt owed to Non-banks
o Debt owed to financial institutions
???? Government securities at face
o Debt owed to insurance companies
???? Government securities at face
o Debt owed to building societies
???? Government securities at face
o Debt owed to parastatals
???? Government securities at face
???? Debt owed to Non-residents
o Government securities at face
3.4.2 Sources of data
Government overdraft and deposits at CBK are obtained from
the management report by account (M2 report) produced by Banking
Department on a daily basis. End month figures are confirmed against
figures published by Finance Department in the CBK 88.
Stock and holders of Treasury bills (at face) data are obtained
respectively from the stock of outstanding treasury bills report and the
Treasury bills paid up report for successful bidders both prepared by
National Debt Office.
Stock and holders of Treasury bonds (at face) data are obtained
respectively from the stock of outstanding treasury bonds report and
Treasury bonds paid up report for successful bidders both prepared by
National Debt Office.
Stock and holders of government stocks data are obtained
respectively from the stock of outstanding government stocks report
19
and the government stocks paid up report for successful bidders both
prepared by National Debt Office.
Government deposits in commercial banks and advances to
The government by commercial banks are obtained from the
consolidated commercial banks’ balance sheet (table A) prepared on a
monthly basis by Monetary Statistics Section, Research Department.
The stock and holders of tax reservation certificates (TRCS)
data is obtained from exchequer returns prepared by the Treasury.
Capital receipts (privatisation proceeds) data is obtained from
the management report by account (M2 report) produced by Banking
Department on a daily basis. Only proceeds derived from sale of
government shares in parastatals are considered privatisation proceeds.
Other proceeds related to privatisation (such as license fees) are
counted as revenue in the budget out-turns.
IMF funds on lent to the government are obtained from the CBK
88 published by Finance Department on a monthly basis.
Frozen government accounts (debt) data is obtained from the
CBK 88 on a monthly basis. Frozen government accounts consist of
sterilised account, Repo Treasury bills account and monetary policy
suspense account. Frozen government accounts are compiled daily
using the money market report from Financial Markets Department.
Repo treasury bills form part of the stock of treasury bills.
3.4.3 Compilation
Consists of debt owed to Central Bank of Kenya (CBK), commercial
banks, non-bank financial institutions, National Social Security Fund
(NSSF), other parastatals, non-residents, advances by treasury to
parastatals and other creditors. Domestic debt is reported on gross and
net basis. Net debt is gross debt net of government deposits in banks and
advances by Treasury to parastatals.
Gross debt owed to CBK consists of overdraft, cleared items awaiting
transfer to PMG, IMF funds on let to the government, frozen account,
and treasury bill rediscounts. Net debt owed to CBK is gross debt
owed to CBK net of government deposits at CBK.
Gross Debt owed to commercial banks consists of commercial bank
advances to the government and commercial bank holdings of
government securities (at face) (i.e. long term stocks, floating rate
20
bonds, fixed rate bonds and treasury bills). Net debt owed to
commercial banks is gross debt owed to commercial banks net of
government deposits in commercial banks.
Gross Debt owed to non-residents consists of non-resident holdings of
government securities (at face) (i.e. treasury bills, floating rate bonds
and fixed rate bonds).
Gross Debt owed to non-bank financial institutions, NSSF, other
parastatals and other holders consists of their holdings of government
securities (at face) (treasury bills, stocks, and treasury bills) and tax
reservation certificates (TRCs). Net debt owed to non-bank financial
institutions is gross debt owed to non-bank financial institutions net of
government deposits in non-bank financial institutions.
Net debt is gross debt net of government deposits in banks (CBK and
commercial banks) and advances by treasury to parastatals (NCPB,
C&SFC and other parastatals).
Government domestic debt tables also record memorandum items
consisting of stocks of treasury bonds (at face) (fixed rate, floating rate
and special bonds), treasury bills (at face), long-term stocks and frozen
government accounts excluding Repo treasury bills.
3.5 Domestic Interest Payments
3.5.1 Sources of data
Discount on Redemptions
???? Interest payments on treasury bonds and government
stocks are obtained from the schedule of interest payments on
treasury bonds and stocks. This schedule is prepared by national
Debt Office, Financial Markets Department, on a monthly basis.
???? In the case of treasury bonds commission to CBK,
commission to other selling agents, discount and other
charges are obtained from the paid up summary report for
bonds as soon as a new issue of treasury bonds has been sold.
???? Interest payments (discount) on treasury bills are
obtained from paid up summaries for maturing Treasury bill
issues. Commission to CBK is obtained from paid up
summaries for new issues of treasury bills.
???? Interest on Government overdraft is obtained from the
management report on daily interest charges for the government
21
overdraft account. Banking Department every month produces
this report.
Discount on new issues
???? Interest payments on treasury bonds and government
stocks are obtained from the schedule of interest payments on
treasury bonds and stocks. This schedule is prepared by national
Debt Office, Financial Markets Department, on a monthly basis.
???? In the case of treasury bonds commission to CBK,
commission to other selling agents, discount and other
charges are obtained from the paid up summary report for
bonds as soon as a new issue of treasury bonds has been sold.
???? Interest payments (discount) on treasury bills are
obtained from paid up summaries for new issues of Treasury
bills. Commission to CBK is obtained from paid up
summaries for new issues of treasury bills.
???? Interest on Government overdraft is obtained from the
management report on daily interest charges for the government
overdraft account. Banking Department produces this report
every month.
3.5.1 Compilation
Discount on Redemptions
Consists of:
???? Interest payments on long-term stocks.
???? Interest payments on fixed rate bonds. If there is a new issue of
fixed rate bonds then include commission to CBK, commission to
other selling agents and other charges for the new issue. If there is a
maturing issue that was issued at a discount, include the discount.
???? Interest payments on floating rate bonds. If there is a new issue of
floating rate bonds then include commission charged by CBK,
commission to other selling agents and other charges. If there is a
maturing issue that was issued at a discount, include the discount.
???? Interest payments on special bonds. If there is a new issue of special
bonds then include commission charged by CBK and other charges
for new issue.
???? Interest payments on the government overdraft at CBK.
???? Interest payments on maturing treasury bills. If there is a new issue
of treasury bills, then include the commission charged by CBK.
22
Discount on new issues
Consists of:
???? Interest payments on long-term stocks.
???? Interest payments on fixed rate bonds. If there is a new issue of
fixed rate bonds then include commission to CBK, commission to
other selling agents, other charges and discount (if a bond is sold at
a discount) for the new issue.
???? Interest payments on floating rate bonds. If there is a new issue of
floating rate bonds then include commission charged by CBK,
commission to other selling agents, other charges and discount (if a
bond is sold at a discount) for the new issue.
???? Interest payments on special bonds. If there is a new issue of special
bonds then include commission charged by CBK and other charges
for new issue.
???? Interest payments on the government overdraft at CBK.
???? Interest payments on new issues of treasury bills. If there is a new
issue of treasury bills, then include the commission charged by
CBK.
23
4. BALANCE OF PAYMENTS
In the balance of payments section, the major report produced is the
Balance of Payments (BOP) Statement. Several other reports are
produced in this section including commodity market reports,
merchandise trade reports, foreign currency receipts and payments
statistics, and monetary movements statistics. The balance of payments
statement consists of the current account, capital and financial account,
and reserves and related items. Memorandum items are also shown
on the BOP statement. The composition of each of these items is
given in the summary below.
4.1 BALANCE OF PAYMENTS STATEMENT
4.1.1 Analytical Framework
CURRENT ACCOUNT
Merchandise Account
Exports, fob
Coffee Exports
Tea Exports
Horticulture
Oil products
Other Exports
Imports, cif
Public imports
Private imports
Oil imports
Chemical imports
Manufactured goods imports
Machinery and Transport imports
Other imports
Services
Non-factor services
Credit
Debit
Transportation account
Credit
Debit
Of which freight
24
Travel account
Credit
Debit
Other services account: government
Credit
Debit
Other services account: private
Credit
Debit
Income account
Credit
Debit
Official interest
Other (private)
Current transfers account
Private
Credit
Debit
Public
Credit
Debit
Capital and Financial Account
Capital account
Project grants
Debt forgiveness
Other
Financial account
Investment assets and liabilities
Official, medium & long-term
Inflows
Program loans
Project loans, including defence loans
Government guaranteed
Outflows
Private, medium & long-term
Inflows
Energy financing
Kenya Airways
Other
25
Outflows
Foreign Direct Investment (FDI)
In Kenya:
Equity
Other
Abroad – Capital repatriation
Commercial Banks (net)
Short Term and Net Errors & Omissions (NEO)
Of which estimated:
Short Term/Portfolio (net)
Inflows
Outflows
Net Errors and Omissions (NEO)
OVERALL BALANCE
FINANCING
Changes in Gross Official Reserves
IMF (net)
Disbursements
Repayments
Other
MEMO:
Gross Official Reserves
Commercial Banks Reserves
4.1.2 Sources Of Data
Current Account
Exports, fob – This is the sum of the Domestic Exports and Reexports
values as given in table 7 of the Monthly Trade Report (MTR),
from Customs and Excise Department of KRA. Domestic Exports are
goods grown, produced or supplied or manufactured in Kenya,
exported to other countries or supplied as aircraft or ship’s stores.
They exclude re-exports. It is also equal to the total on Domestic
Exports analysis table 3 of the MTR and the total on the Re-exports
table 5 of the same report.
26
Coffee exports – Data on coffee is obtained from the Monthly Trade
Report from Customs and Excise Department. Code 071, of table 3 of
this report gives the monthly coffee earnings.
Tea exports – Tea exports are obtained from the Monthly Trade
Reports (code 0741 of table 3), by Customs and Excise Department.
Horticulture – Foreign exchange earning arising from the export of
horticultural products. These products are vegetables, fruits, and
flowers.
The source of this information is Customs and Excise Department
MTR.
Values corresponding to codes 054, 056, 057, 058, and 292711 of
table 3 give exports due to these horticultural products.
Oil products – Information on Foreign export earning relating to oil is
also obtained from the MTR. Code 3, (Mineral fuels, lubricants and
related materials) of this report gives earning arising from oil products
Other exports – This refers to all other exports excluding those
mentioned above. Information on other exports is obtained from the
Monthly Trade Reports by Customs.
Imports, cif – Imports cif value is obtained from the Monthly Trade
Reports by Customs and Excise Department. Table 1 (state total) and
table 7 both give the value of Kenya’s imports, CIF. Imports in the
BOP statement are split into public and private imports.
Public imports – These are imports by the government. They
include all goods imported by the government for its own use
excluding imports by the military. This information is obtained from
the Monthly Trade Report (handout) by Customs and Excise
Department.
Private imports – These are all other imports excluding those by the
government. They include parastatal imports. Source of this
information is Table 1 of the MTR by Customs and Excise Department.
Private imports in the BOP Statement are further split into oil,
Chemicals, Manufactured goods, Machinery & Transport Equipment,
and other imports respectively.
Oil imports – These are imports related to oil products. Code 3,
table 1 of the MTR gives oil imports.
27
Chemical imports – This refers to all types of chemical imports.
Source of information on chemical imports is the Monthly Trade
Report Code 5 of table 1.
Manufactured goods imports – These are imports corresponding to
Code 6 of table 1 of the Monthly Trade Report.
Machinery and transport equipment imports – These are
imports corresponding to Code 7 of table 1 of the Monthly Trade
Report.
Other imports – These are all other imports excluding those
corresponding to codes 3, 5, 6, and 7 of Table 1 of the Monthly Trade
Report.
Services – These are all non-factor services between Kenyan residents
and non-residents. Examples of these services are Transportation,
Insurance, Travel, and Communication, Construction e.t.c. Source of
information relating to these services is the Central Banks’ monthly
Foreign Exchange Statistics return from banks, CBK FXS (M). CBK
FXS(M) underestimates both receipts and payments in foreign
exchange transactions. Benchmark constants are used to inflate these
figures for purposes of compiling the balance of payments. These
constants are derived using survey figures compiled by the Central
Bureau of Statistics.
Non-factor services – These are services such as Transportation,
Travel, and Others. They exclude income and current transfers. Main
source of this information is the CBK FXS (M).
Transportation services – Information on transportation is obtained
from the CBK FXS (M).
Travel services – Information on travel services is obtained from the
CBK FXS (M).
Other services – These other services are those related to both
government and the private sector. Information on these services is
obtained from the CBK FXS (M).
Income – This consists of employees’ compensation and investment
income. Compensation for employees covers wages, salaries, and
other benefits in cash or in kind. Investment income covers receipts
and payments of income associated respectively with residents’ holding
28
of external financial assets and with residents’ liabilities to nonresidents.
It consists of direct investment income, portfolio investment
income, and other investment income. Source of this information is
the CBK FXS (M).
Official interest payments – Source of this information is the CBK
FXS (M).
Current transfers – Current transfers are those which do not involve:
transfer of ownership of fixed assets, transfer of funds linked to or
conditional upon acquisition or disposal of fixed assets, forgiveness
without any counterparts being received in return of liabilities by
creditors. All of which are capital transfers. Source of this information
is the CBK FXS (M).
Private transfers – These are transfers related to the private sector of
the economy. Information on private transfers is obtained from the
CBK FXS (M).
Official transfers – These are by the government. Source of this
information is the CBK FXS (M).
Capital and Financial Account
Capital account – The capital account of Kenya’s BOP Statement is
composed of Project grants, debt forgiveness, and other forms of
financing. Source of this information is the Treasury, Ministry of
Finance.
Project grants – This is information relating to grants to or by the
government of Kenya. Source of information on grants is the
Treasury, Ministry of Finance.
Debt forgiveness – This represents any debt forgiveness to or by the
government of Kenya. Information on debt forgiveness is obtained
from the Treasury.
Other – These are grants or debt forgiveness figures.
Financial account – This takes into account information relating to
Investment assets and liabilities. Source of this information is the
Treasury.
Investment assets and liabilities – All components are classified
according to type of investment or by functional subdivision such as
29
direct investment, portfolio investment, other investment, and reserve
assets. Distinction between one form of investment and another can
be directional (abroad or in the reporting economy), customary (asset
or liability), type of instrument (equity or debt securities, trade credits,
loans, currency and deposits, other assets or liabilities), by sector (of
the creditor for assets or of the debtor for liabilities), or by maturity
(more than one year for long-term and one year or less short term).
Investment assets and liabilities are further divided into official
(medium & long-term), private (medium and long-term), foreign direct
investment and commercial banks. Treasury.
Official, medium, & long-term – This takes into account both
inflows (program loans, project loans, and government guaranteed
loans) and outflows of investment assets and liabilities. Source of this
information is the Treasury.
Commercial banks – This item considers changes in Net Foreign
Assets. Information on Foreign Assets and Liabilities is obtained from
the Banking Survey compiled by the Monetary Statistics Section,
Research Department every month.
Financing
Changes in gross official reserves – Source of this information is
the monetary movements compiled by the Balance of Payments
Section.
International Monetary Fund (IMF) – This considers both
disbursements and repayments. Source of this information is the
Treasury.
4.1.2 Compilation
All figures used in these accounts are obtained from various sources
and denominated in Kenya schilling. Conversions are then done
using average monthly exchange rate to the dollar. Usually, monthly
figures do not add to annual totals due to annual adjustments.
CURRENT ACCOUNT – Merchandise account (net) plus Non-factor
services (net).
MERCHANDISE ACCOUNT (net) – Total exports less Total imports.
Exports, fob – Value on Table 3 or Table 7 of MTR in dollars.
Coffee exports – Value in Table 3 code 071 of MTR in dollars.
Tea exports – Value in Table 3 code 0741 of MTR in dollars.
30
Horticulture – Sum of value in Table 3 codes 054,056,057,058,
and 292711 of MTR in dollars.
Oil products – Value in Table 3 code 3 of MTR in dollars.
Other exports – Total exports less coffee, tea, horticulture, and oil
exports.
Imports, cif – Value on Table 1 or Table 7 of MTR in dollars.
Public imports – Value on the Monthly Trade Report (handout) in
dollars.
Private imports – Value on Table 1 or Table 7 of the MTR less
public imports converted to dollars.
Oil imports – Value in Table 1 code 3 of MTR in dollars.
Chemical imports – Value in Table 1 code 5 of MTR in dollars.
Manufactured goods imports – Value in Table 1 code 6 of MTR
in dollars.
Machinery and transport imports – Value in Table 1 code 7 of
MTR in dollars.
Other imports – Total imports less oil, chemical, manufactured
goods, machinery and transport equipment imports respectively.
SERVICES (net) – Non-factor services (net) plus income (net)
plus current transfers (net).
Non-factor service (net) – Credit plus debit balances below.
Credit (total) – Transportation account credit plus Travel
account credit plus other services accounts credits (government
and private), as detailed below.
Debit (total) - Transportation account debit plus travel account
debit plus other services accounts debits (government and
private), as detailed below.
Transportation account (net) – Credit plus debit balances below.
Credit – Receipts corresponding to transportation services on the
CBK FXS (M) in dollars.
Debit - Payments corresponding to transportation services on the
CBK FXS (M) in dollars.
Of which freight – Payments related to freight is obtained
from CBK FXS (M) in dollars.
Travel account (net) – Credit plus debit balances below.
Credit – Receipts arising from tourism in dollars.
Debit – Travel payments on the CBK FXS (M).
Other services account: gov’t (net) – Credit plus debit balances
below.
Credit – Receipts in dollars on the CBK FXS (M) corresponding to
Embassies, UN Agencies, and Development Agencies.
31
Debit – Figures obtained from Treasury.
Other services account: private (net) – Credit plus debit below.
Credit – Receipts from Insurance, Communication, and Others
services in the CBK FXS (M) in dollars.
Debit – Payments relating to Insurance, Royalties, and License fees
in the CBK FXS (M) in dollars.
Income account (net) – Credit plus debit balance below.
Credit – Figures from CBK FXS(M).
Debit – Sum of the two items below
Official interest – Figures obtained from Treasury.
Other (private) – Direct Investment Income as in the CBK
FXS (M) in dollars.
Current transfers account (net) – Net private transfers plus net
public transfers.
Private (net) – Credit plus debit balances below.
Credit – Receipts from NGOs, Missions, and Others on the
CBK FXS (M) in dollars.
Debit – Payments relating to maintenance and savings in the
CBK FX statistics.
Public (net) – Credit plus debit balances below.
Credit – Figures from CBK FXS(M).
Debit – Figures obtained from Treasury.
CAPITAL & FINANCIAL ACCOUNT – This is the difference between the
overall balance and current account balance.
Capital account – Sum of the three direct entries below.
Project grants – Direct entry from Treasury’s Budget Out turn
(BOT).
Debt forgiveness – See grants above.
Others – See above.
Financial account – Capital and Financial account balance less Capital
account balance above.
Investment assets and liabilities – Add together official (medium &
long-term) financing, private (medium & long-term), Foreign Direct
Investment (FDI), and Commercial Banks Net foreign assets.
Official, medium & long-term – Inflows plus outflows below.
Inflows – Add the three items below.
Program loans – Figures obtained from the budget outturn.
Project loans, including defence loans – This is also obtained
from the budget outturn.
32
Government guaranteed – This is an entry from the budget
outturn.
Outflows – These figures are obtained from the budget outturn or
external debt figures.
Private, medium & long-term – Add inflows and outflows below.
Inflows – Add the three figures below
Energy financing - Figures from Treasury.
Kenya Airways – Figures are obtained from Treasury.
Other– Figures obtained from CBK FXS (M).
Outflows – Figures obtained from CBK FXS (M).
Foreign Direct Investment (FDI) – Foreign direct investment in
Kenya
and abroad.
In Kenya: - Equity plus other investments
Equity – This figure is obtained from CBK FXS (M).
Other – This figure is obtained from Treasury.
Abroad – Capital repatriation – This figure is obtained from CBK
FXS(M).
Commercial Banks (net) – This figure is a direct entry from the
monetary moments.
Short Term and, Net Errors & Omissions (NEO) – Financial
account balance less net investment assets and liabilities 2.1 above.
Of which estimated:
Short Term/Portfolio – Add inflows to outflows below
Inflows – Computed from CBK FXS (M).
Outflows - Computed from CBK FXS (M).
Net errors and omissions (NEO) - Short Term and, Net Errors &
Omissions (NEO) less Short Term/Portfolio
OVERALL BALANCE – The sum of current account (Balance on goods,
services and income plus net current transfers) and that of capital and
financial account is the overall balance.
FINANCING
Changes in gross official reserves – Computed from the monetary
movements.
IMF (net) – Add disbursements and repayments
Disbursements – This is a direct entry from Treasury figures.
Repayments - This is a direct entry from Treasury figures.
33
Other - This is a direct entry from Treasury figures.
MEMORANDUM ITEMS
Gross reserves – Gross official reserves plus commercial banks reserves
below.
Official - Direct entry from the monetary movements.
Commercial banks - Direct entry from the monetary movements.
4.2 COMMODITY MARKET REPORTS
Tea, Coffee, Pyrethrum, and Horticulture
Components
Tea and Coffee
1. Production (in tonnes)
2. Monthly Mean Exchange rate (Ksh/US$)
3. Monthly summary of Auction, Stabex,
and Customs figures.
4. Monthly summary of coffee exports.
Pyrethrum and Horticulture
1. Monthly Mean Exchange rate (Ksh/US$)
2. Monthly summary of customs figures
3. Monthly summary of Pyrethrum Board of Kenya figures for pyrethrum
and Horticultural Crop Development Authority for horticulture.
4.2.1 Sources of data
Customs and Excise Department
MTR – Tea, Coffee, Pyrethrum, and Horticulture figures. Value in
Kenya shillings and quantities in kilograms are given.
Stabex – Tea and Coffee figures. Values in Kenya shillings and
quantities in Kilograms are given.
Africa Tea Brokers Ltd, (ATB)
ATB figures give tea production (in millions of kgs), volume of tea
auctioned at the Mombasa auction (in kgs), and the average price (in
US$ per kg) prevailing for both primary and secondary auctions each
auction day. ATB figures are available weekly.
Coffee Board of Kenya
Coffee Board of Kenya gives the total quantity (in bags of 60 Kgs) of
coffee and the average price (per 50 Kgs) for the various grades sold
34
each week. It also gives cumulative quantity of coffee in bags
exported since the beginning of each coffee year.
Pyrethrum Board of Kenya
Pyrethrum Board of Kenya gives cumulative pyrethrum sales (in K£)
since the beginning of the pyrethrum financial year and monthly
quantity shipped (in tonnes equivalent).
Horticultural Crop Development Authority
HCDA gives values (in Kshs) and quantities (in Kgs) of the various
horticultural products exported each month.
Central Bureau of Statistics
CBS gives production figures of coffee in tonnes.
4.2.2. Compilation
Production figure from ATB is multiplied by 1000 to obtain tea
production (in tonnes).
Exchange rate used is the mean rate for the month evaluated using
the daily mean rates to the dollar.
Weekly value of Tea auctioned in US dollars is obtained by
multiplying the quantity (Kgs) by the price (US$/Kg). Weekly
quantities and values are added at the end of each month to obtain
total quantity and value auctioned in that month. Monthly average
price is then calculated by dividing total value for the month by total
quantity for the same month.
Number of bags sold in each auction is multiplied by 60 and divided
by 1000 to obtain the quantity of coffee auctioned in tonnes. The
corresponding price is multiplied by a factor of 20 to obtain price in
Kenya shillings per tonne. The value of coffee auctioned each week
is then obtained by multiplying this price by the quantity. Weekly
values and quantities are added to obtain the total value and
quantity of coffee sold each week. Average price is then
determined.
For both coffee and tea stabex value (in Kshs) is divided by stabex
quantity (in Kgs) to obtain average price in (in Ksh/Kg). Conversion
to dollars is done using the average exchange rate in the month.
35
For Tea, Coffee, Pyrethrum, and Horticulture values (in Ksh) are
divided by quantities (in Kgs) to obtain prices (in Ksh/Kg).
Conversions to dollars are done using average exchange rate.
Monthly coffee exports (in bags) are obtained by subtracting the
previous months closing figure of exports from the current months
closing figure. The figure obtained is multiplied by 60 to obtain
coffee exports in Kilograms.
Exports accruing from horticultural produce are obtained by dividing
the value from HCDA by average exchange rate.
4.3 MERCHANDISE TRADE
4.3.1 Sources of data
Exports and Imports analysis
This is based on Standard International Trade Classification, (SITC).
SITC classification divides merchandise into ten trade classifications
with many other sub classifications. These classes are 0-9. This
analysis looks at the value and quantity of major goods imported
and exported. Source of this information is the Monthly Trade
Report. CBK FXS(M) also gives an approximation to merchandise
trade. Values in US$ dollars are obtained using average exchange
rates.
Price quantity analysis
This is based on exports and imports analysis above. It aims at
evaluating the value and quantity variations as well as price changes.
Kenya’s direction of trade
This looks at Exports and Imports between Kenya and the rest of the
world. It aims at assessing Kenya’s Trade Balance with other
countries. Source of this information is Table 4 and Table 6 of the
Monthly Trade Report. Exports, Imports, and Re-exports are
analysed country by country.
4.4 FOREIGN CURRENCY RECEIPTS AND PAYMENT
STATISTICS
4.4.1 Sources of data
These are figures from Financial Markets Department outlining
Kenya’s receipts and payments. There are two categories of
receipts and payments statistics from Financial Markets.
36
???? Daily inflows and outflows on major commodities like coffee, tea,
and oil with a transaction value of over US$ 500,000.
???? Receipts and payments from inter-bank transactions as well as
those from foreign transactions. The gain or loss arising from
these transactions is then evaluated.
Components
Inflows:
These are due to tea, coffee, inward investments, offshore loans, oil
sales, and other occasional inflows.
Outflows:
These are due to payments related to oil, food, loan repayments,
outward investment or disinvestments and other occasional outflows.
This information is compiled by the Financial Markets Department
from information received from commercial banks on daily basis.
4.4.2 Compilation
Figures corresponding to each item are added on daily basis.
Monthly totals are obtained by adding daily figures.
4.5 MONETARY MOVEMENTS
These are used to monitor changes that may take place in some
specific foreign accounts held by both the government and the
Central Bank of Kenya
4.5.1 Analytical framework
Foreign assets, (FA) due to:
Central Bank of Kenya
Central Government
Reserve tranche position
Commercial banks
Total foreign assets
Total official assets
Foreign liabilities, (FL) due to:
Use of Fund credit
SDR allocation
Other external banks
37
Total liabilities
Total official liabilities
Net foreign assets
4.5.2 Sources of data
Central Bank of Kenya FA – This information is obtained from
Financial Markets Department. It reflects Central Banks’ foreign
assets as at the end of the month.
Central Government FA – This is obtained from the Crown Agents
(U.K) who are the governments’ financial agents abroad. They
provide statements, which indicate any account movements within
the month.
Reserve tranche position FA – These are funds wih the IMF, which
can be withdrawn on demand for purposes of supporting the
balance of payments. It is 4.6 per cent of Kenya’s quota currently
(2002) standing at SDR 271,400,000. Source of this information is
the International Monetary Fund, IMF.
Commercial banks FA – These are foreign assets due to commercial
banks operating in Kenya. The source of this information is the
banking survey compiled by the Monetary Statistics Section.
Use of Fund Credit FL – This refers to outstanding loans to the
Kenya Government by the IMF. Source of this information is the
IMF.
SDR allocation FL – These are funds allocated to member countries
by the IMF to supplement existing assets for the expansion and
balanced growth of international trade. Source of this information is
the IMF.
Other external banks FL – These are other foreign liabilities due to
other external banks. Source of this information is the Financial
Markets Department.
Commercial banks FL – These are foreign liabilities due from
commercial banks operating in Kenya. Source of this information is
the banking survey by Monetary Statistics Section.
Compilation:
Foreign Assets (FA) due to:
38
Central Bank of Kenya – Direct entry from figures from
Financial Markets in Kenya shillings. Conversion to dollars
and SDR equivalents is done using spot rates as at end
month and end period SDR rate from IMF web site.
Central Government – Information on four accounts, three in
sterling pounds and one in US dollar is provided by the
Crown Agents every end month. The dollar account is
converted to sterling pounds equivalent using the spot rates
as at end month. The sum of these four accounts gives the
total FA of the central government as at end month. The
shilling, dollar, and SDR equivalents are then calculate using
end period exchange rates.
Reserve tranche position – The reserve tranche position in shillings
or US dollars is obtained by multiplying the SDR figure with the
end period exchange rates.
Commercial banks – Foreign assets in Kenya shillings is converted
into dollars and SDR equivalent using end period exchange rates.
Total foreign assets – Central banks FA plus Central governments
FA plus Reserve tranche position FA plus commercial banks FA.
Total Official Assets – Sum of all foreign assets excluding
commercial banks foreign assets.
Foreign Liabilities, (FL):
Use of Fund credit – The SDR value as at end of each month
is used to obtain the shilling and the dollar equivalent values
using the end period exchange rates.
SDR allocation – The SDR allocation is used to obtain the
shilling and dollar value equivalents using the end period
exchange rates.
Other external banks – The Kenya shilling value is converted
to the dollar and SDR value using the end period exchange
rates.
Commercial banks – Foreign liabilities of commercial banks
in Kenya shillings is used to obtain the dollar and the SDR
values using the end period exchange rates.
39
Total liabilities – Use of fund credit plus SDR allocation plus
other external banks plus commercial banks liabilities.
Total official liabilities – Sum of all the liabilities above
excluding commercial banks liabilities.
Net foreign assets- Total official assets less total official
liabilities.
40
5. REAL SECTOR STATISTICS
5.1 MAJOR REPORTS
Consumer Price Index (CPI) and Inflation
Analysis of credit to Agricultural Sector by Commercial Banks
International Financial Statistics (IFS) Reports
GDP and Aggregates
5.1.1 Sources of Data
Central Bureau Of Statistics
Most of the figures used in the section are obtained from the Central
Bureau of Statistics (CBS). These are:
CPI—Consumer price indices, overall and underlying
National accounts statistics including GDP and aggregates
GDP and related aggregates are produced by the National Accounts
section of the Central Bureau of Statistics and are used to update a
table on GDP and it’s aggregates.
Commercial Banks
Commercial banks submit a monthly return, CBK BS(M) showing the
balance sheet and attachments detailing it’s contents. Table E of the
return gives a breakdown of credit to agriculture by type of enterprises
and by period of credit.
IMF IFS Reports
The IMF’s International Financial Statistics reports provide valuable
and important data about other countries on selected economic
activities. They are used to meet various data needs.
5.1.2 Compilation
Consumer Price Index
The Central Bureau of Statistics compiles the consumer price indices.
In January 2002 the CBS introduced a new consumer price index. The
new CPI is compiled for various regions. These regions are Nairobi and
the Rest of Kenyan Towns. Corresponding to these regions, the new
CPI being compiled are the New Nairobi CPI
TABLE OF CONTENTS
1. FOREWORD…………………………………………………. 3
2. MONETARY STATISTICS…………………………………. 4
2.1 The Banking Survey………………………………….. 4
2.1.1 Analytical framework………………………………… 4
2.1.2 Sources of data………………………………………. 5
2.1.3 Key concepts…………………………………………. 6
2.1.4 Compilation………………………………………….. 7
2.2. Other Summary Tables ……………………………… 12
2.2.2 Weighted interest rates……………………………….. 12
2.2.3 Sectorized credit to private sector…………………… 12
2.2.4 Notes and coin in circulation………………………… 13
3. GOVERNMENT FINANCE STATISTICS……………….. 14
3.1 Major reports compiled……………………………… 14
3.2 Terminology……………………………………………. 14
3.3 Credit to Government Table………………………… 15
3.3.1 Analytical Framework………………………………… 15
3.3.2. Sources of data……………………………………….. 16
3.3.3 Compilation…………………………………………… 17
3.4 Deficit financing ………………………………………. 18
3.4.1 Sources of data……………………………………….. 18
3.4.2 Compilation…………………………………………… 18
3.5 Government domestic debt ………………………… 19
3.5.1 Analytical framework………………………………… 19
3.5.2 Sources of data………………………………………. 19
3.5.3 Compilation………………………………………….. 20
3.6 Domestic interest payments ……………………….. 21
3.6.1 Sources of data………………………………………. 21
3.6.2 Compilation………………………………………….. 22
4. BALANCE OF PAYMENTS STATISTICS ……………… 24
4.1 Balance of Payments Statement ………………….. 24
4.1.1 Analytical framework………………………………… 24
4.1.2 Sources of data………………………………………. 26
1
4.1.3 Compilation…………………………………………… 30
4.2 Commodity market reports ………………………… 34
4.2.1 Sources of data………………………………………. 34
4.2.2 Compilation………………………………………….. 35
4.3 Merchandise Trade …………………………………… 36
4.3.1 Sources of data………………………………………. 36
4.4 Foreign Currency Receipts and Payments ……… 36
4.4.1 Sources of data……………………………………… 36
4.4.2 Compilation………………………………………….. 37
4.5 Monetary Movements ………………………………. 37
4.5.1 Analytical framework………………………………… 37
4.5.2 Sources of data………………………………………. 38
5. REAL SECTOR STATISTICS …………………………….. 41
5.1 Major Reports …………………………………………. 41
5.1.1 Sources of data………………………………………… 41
5.1.2 Compilation……………………………………………. 41
6. GRAPHICS AND DATA STORAGE ……………………… 45
Charts, sources of data, software used and data storage
7. APPENDICES ………………………………………………… 47
APPENDIX A: Sources of data and their uses…………….. 47
APPENDIX B: Flow chart for sources of data within CBK.. 53
APPENDIX C: Flow chart for external sources of data…… 54
2
1. FOREWORD
Functionally, Research Department can be split into two broad divisions,
namely, economic analysis and statistics collection and compilation,
with the economic analysis effort being geared towards achieving the
core function and the statistics collection and compilation serving the
needs of the economic analysts in the department.
Economic and Financial Statistics Division handles all matters related to
collection and compilation of statistics. This function is largely routine
employing both internationally accepted methods, concepts and also
domestic conventions. New members of staff in the Division are trained
on the job to know the sources of the primary data and to become
proficient in producing the necessary statistical reports.
This booklet on sources and methods should be useful to a new
member of staff in the Division and users of our statistics. The booklet
describes sources of data and compilation of the major reports produced
by each section in the Division. These include, inter alia, the Banking
Survey, Credit to Government and Balance of Payments Statement.
The booklet deals also with compilation of inflation and for the major
tables and charts that appear in our publications, identifies the sources
of data and where they can be accessed in the Graphics and Data
Storage Section of the Division.
As a first attempt in describing sources and methods, the booklet
deliberately concentrates on the major reports. Sources and methods
for other reports which are not covered here will be included in the
booklet in later revisions if it becomes necessary.
3
2. MONETARY STATISTICS
2.1 THE BANKING SURVEY
The banking survey, the main monetary statistics report, is a consolidated
sectorised accounts of the Central Bank of Kenya and institutions
registered under the Banking Act.
It facilitates the analysis of the monetary aggregates that are most
influenced by the monetary authorities and that play the most important
role in determining output, prices and the balance of payment.
2.1.1 Analytical Framework
???? Net Foreign Assets (NFA)
Net foreign assets (CBK/Govt)
Net foreign assets (Banks and NBFIs)
???? Net Domestic Assets (NDA)
Domestic credit
Credit to government (Net)
Credit to other public sector
Credit to private sector
Other items Net
Other items net (CBK)
Other items net (Banks and NBFIs)
???? Money Supply (M3X) (M3 plus resident forex deposits)
M3 (M2 plus private sector deposits with NBFIs)
M2 (M1+M0 plus private sector quasi - monetary
deposits with banks)
M1 (M0 plus private sector demand deposits with
banks)
M0 – currency outside banks
Resident foreign currency deposits (X)
4
2.1.2 Sources Of Monetary Data
Data for compiling monetary statistics is obtained from different
sources.
Central Bank Of Kenya
Finance Department
???? Report CBK 88 – The balance sheet of Central Bank of Kenya
???? Daily Trial Balance report- shows the detailed accounts of CBK on
a daily basis.
Financial Markets
???? Foreign assets position report shows the foreign assets and
liabilities of CBK at current exchange rates.
???? Report FX shows the daily forex receipts and payment by CBK.
National Debt Office
???? Report showing the Repo purchases by CBK
Banking Division
???? Summary of cash holdings (per denomination) by cashiers at the
last working day of the month.
???? Management report showing the daily summary of accounts at
banking office
???? Daily money market report showing the inter-bank borrowings
and lendings
Currency Division
???? Report showing daily currency in circulation figure.
???? Report showing the currency in circulation per denomination at
the last working day of the month.
Commercial Banks
Commercial banks submit the CBK BS(M) return constituting the
following tables as at the end of every month:
Table A – balance sheet
Table B – analysis of deposits
Table C – analysis of loans and advances to the private sector.
Table D – analysis of mortgage loans and advances
Table E — analysis of agricultural credit
Table F – deposits and lending rates
5
Non-Bank Financial Institutions
Non-bank financial institutions submit the CBK BS(M) return
constituting the following tables as at the end of every month:
Table A – balance sheet
Table B – analysis of deposits
Table C – analysis of loans and advances to the private sector.
Table D – analysis of mortgage loans and advances
Table E — analysis of agricultural credit
Table F — deposits and lending rates.
Besides the above tables, banks and NBFIs are required to submit
Tables A and B as at the 10th and 20th day of every month. These are
used to compile banking survey position figures for these dates. These
surveys are considered ‘estimates’.
International Monetary Fund (IMF)
The Reserve Position in the Fund figure forms part of our foreign assets
and is obtained from the web site of the IMF.
Crown Agents Financial Services Limited
Government deposits with Crown Agents which is a component of
NFA of the banking survey is obtained from the Balance of Payment
Section of Research Department. This section obtains the same from a
statement of accounts submitted to the Department by the Crown
Agents who are the Government’s agents in UK.
2.1.3 Key Concepts
Net Foreign Assets (NFA) – Refers to net worth of claims on nonresident
sector.
Net Domestic Assets (NDA)- Refers to net resident sector credit to
the economy.
Money Supply (M3X) - Refers broadly to M3X which is private sector
deposits and currency outside banks.
NFA + NDA = Money Supply, M3X
6
2.1.4 Compilation
Net Foreign Assets (NFA)
The NFA of the banking system is the sum of NFA of CBK and Banks
and NBFIs. The NFA of CBK includes government foreign currency
deposits with Crown Agents and Reserve Position in the Fund.
NFA of CBK is computed as the sum of:
???? Gold and foreign exchange
???? Reserve Position in the Fund
???? Deposits with Crown agents
LESS
???? Foreign liabilities of CBK
NFA of Banks and NBFIs
ADD
???? Foreign assets (from the consolidated balance sheets of both banks
and NBFIs)
???? Non resident local currency loans and advances
LESS
???? Foreign liabilities(from the consolidated balance sheets of both
banks and NBFIs)
???? Non-resident local currency deposits
Domestic Credit
Credit To Government from:
CBK
ADD
???? Treasury bills and bonds held
???? Overdraft to government
???? Uncleared effects
???? IMF funds on-lent to government
LESS
???? Government deposits at CBK
???? Reserve position in the Fund
???? Deposits with Crown Agents
Banks and NBFIs
ADD
???? Portfolio investments in government securities
???? Central government bills and notes discounted
???? Advances to central government
7
LESS
???? Government deposits as reported in the consolidated banks and
non-banks balance sheets
Credit To Other Public Sectors from:
Banks and NBFIs
ADD
???? Portfolio investments with local government, Financial and Nonfinancial
public enterprises notes.
???? Bills and Notes discounted in favour of local government, Financial
and Non-financial public enterprises.
???? Advances to local government, Financial and Non-financial public
enterprises.
LESS
???? Local government deposits with commercial banks and NBFIs.
Credit To Private Sectors from:
CBK
CBK advances credit to the private sector in form of loans to staff.
Banks and NBFIs
ADD
???? Placements with institutions other than banks and non-banks,
???? Portfolio investments with other entities other than the central
government and other public sectors,
???? Bills and notes discounted in favour of other entities other than the
central government and other public sectors
???? Loans and advances to other entities other than the central
government and other public sectors and banks and NBFIs.
Note:
Loans and advances to residents in foreign currency form part of
banking system private sector credits whereas non-residents local
currency loans and advances form part of foreign assets.
Money Supply, M3X
Made up of:
Currency outside banks given as
???? Currency in circulation
LESS
???? Commemorative coin,
???? Cash in tills of banks and NBFIs.
Other deposits at CBK comprising of:
8
???? deposits of banks in liquidation,
???? special projects deposits and
???? other impersonal accounts.
Private sector deposits with banks and NBFIs.
The deposits in money exclude those of central government, local
government, commercial banks, NBFIs and non-residents.
M0 is computed as:
Currency in circulation
LESS
???? Till cash with banks
???? Commemorative coin
M1 is computed as:
ADD
???? M0
???? Demand deposits with banks
???? Other deposits at CBK
M2 is computed as:
ADD
???? M1
???? Quasi (Term) deposits with banks
M3 is computed as
ADD
???? M2
???? Quasi deposits with NBFIs
???? NBFIs deposits with banks
LESS
???? cash in till of NBFIs.
M3X is computed as
ADD
???? M3
???? Resident foreign currency deposits.
M3XT is computed as
ADD
???? M3X
???? Non-bank public holdings of government papers.
9
Non-bank public holdings of government paper is obtained as follows:
Total domestic credit to government (from Credit to Government
Table compiled by Government Finance Section of Research
department) LESS credit to government from the banking system.
M3XT is strictly not a banking survey item because of the Nonbank
public holdings of government paper.
Other Items Net
Composed of all other liabilities of the banking system other than
Deposits and foreign liabilities LESS all other assets other than
placements, bills and notes discounted and loans and advances.
Note: Net Domestic Assets is computed as
Domestic Credit
LESS
Other Items Net
Constant Exchange Rate Banking Survey
For purposes of monitoring performance of monetary policy while
controlling the effects of exchange rate shifts, it is necessary to compile
a banking survey at a constant exchange rate. Currently, the constant
exchange rate is based on the US dollar exchange rate ruling at the
end September, 2001. Compilation of this survey is largely similar to
the compilation described in the foregoing except for the following
differences which are worth noting.
The two major components of the constant exchange rate banking
survey namely the sectorized CBK balance sheet and the banks and
NBFIs survey are compiled and presented separately. The banking
survey is obtained by consolidating the two components by netting
out intra-banking system balances.
The Sectorised Central Bank balance sheet
???? Net foreign assets of the Central Bank
This figure is obtained from CBK analytical balance sheet
computed by Research Department on a daily basis. The figure
excludes the Reserve position in the Fund and government
deposits with Crown Agents.
10
???? Credit to banks from CBK
The figure is obtained from the daily Central Bank balance sheet
where it is referred to as advances and discounts. This figure is
net of REPO sales by CBK and hence different from the
advances and discount figure reported in the CBK 88.
The Banks and NBFIs Survey
???? Government securities held by banks and NBFIs
The figure on total government securities held by banks is
obtained from National Debt Office records. For NBFIs, the
figure is obtained from the consolidated CBK BS(M) return for
NBFIs.
???? Credit to CBK
The figure is similar but reverse to the credit to banks from CBK
shown in the Central Bank sectorised balance sheet.
Non-bank public holding of government securities
The amount of government securities held by non-bank public is
obtained by working out the difference between total credit to
government from domestic sources and that sourced from banking
institution only. It is important to note that the figures for the nonbank
public holding of government securities in the normal banking
survey and that given in the constant exchange rate survey are
usually not the same as a result of differences in definition and
sources of data.
First, credit to government in the normal banking survey is net of:
???? Reserve position in the Fund (Contra to government foreign
assets)
???? Government deposits with Crown Agents (Contra to
government foreign assets)
Secondly, banks’ holdings of government securities in the normal
banking survey is sourced from the CBK BS (M) return as reported
by banks while that in the constant exchange rate survey is sourced
from National Debt Office.
11
2.2 OTHER SUMMARY TABLES
2.2.1 Weighted interest rates.
Deposits and lending rates for each bank are reported in Table F of
the CBK BS (M) return. To obtain a representative rate for all the
banks, weighted average rate is compiled.
???? Weighted deposit rate (for a particular maturity) is the sum of
individual bank’s weighted deposit rates. To illustrate, consider
deposits of 0-3 months maturity and let d be a bank’s total deposit
and D be the total deposit for all the banks for which a rate for 0 –
3 months deposits has been reported. If r is the nominal rate the
bank is offering, then the bank’s weighted rate rw = d x r. The sum
D
of rw for all the banks is the weighted interest rate for deposits of 0 –
3 months maturity.
???? Weighted lending rate (for a particular maturity) is the sum of
individual bank’s weighted lending rates. Computation of weighted
lending rate is similar to the computation illustrated above for
deposit rates. In this case however, total loans and advances are
used in place of deposits.
2.2.2 Sectorised credit to Private sector – “SUMARR” FILE
The sectorized credits to the private sector are captured in Table C of
the consolidated CBK BS(M) return. However the total figure in this
table must be equal to the sum of the loans and advances and bills
and notes discounted to the private sector in Table A of banks and
NBFIs return.
When compiling the “SUMARR” file, figures are obtained from Table
C for each sector. However, the sectorial classification in “SUMARR”
file does not exhaust all the sectors given in Table C. Those sectors
not identified in “SUMARR” are reclassified as ‘other activities’ and
credit to the sector is computed as a difference between the total
private sector credit from Table A and credit to the sectors identified
in the “SUMARR” file. The “SUMARR” file is structured as below.
Claims on private sector
Agriculture
Manufacturing
Trade
Exports
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Imports
Domestic
Building & construction
Transport & communication
Finance and insurance
Real estate
Mining and quarrying
Private households
Consumer durables
Business activities
Other activities
2.2.3 Notes and Coins in Circulation
This report is compiled from reconciled currency holdings return as at
the end of every month from Currency Office in the Banking
department.
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3. GOVERNMENT FINANCE STATISTICS
MAJOR REPORTS COMPILED
???? Credit to government (compiled on a daily basis)
???? Deficit financing (compiled on a daily basis)
???? Government domestic debt (compiled on a daily basis)
???? Domestic interest payments (compiled on a weekly and monthly
basis).
Consist of two reports namely; Discount on Redemptions and
Discount on new issues
3.1 Terminology
Revenue (R)
The Government finances its activities primarily by collecting taxes or
other compulsory charges. For purposes of fiscal analysis, revenue is
classified as tax or non-tax. Tax revenue comprise import duty, excise
duty, income tax and value added tax (VAT). Non-tax revenue
comprise investment income, appropriations in aid (AIA), external
grants and other revenue comprising mainly of traffic, land, airport,
wildlife and tourist revenues, licence fees, fines and forfeitures. Grants
are voluntary funds received by the government from other
government units or international organisations. According to the
IMF’s Government Finance Statistics manual (GFS, 2000), only
grants from foreign governments and international organisations
appear in the budget out-turn. AIA refers to revenues generated by
ministries by way of charging fees for their services to the public.
Proceeds related to privatisation of government institutions like
license fees are also classified under revenue. Proceeds from sale of
government shares in public enterprises are classified under financing
as the receipts are intended to help reduce public debt.
Expenditure (E)
Government expenditure consists have recurrent and development
expenditures. Recurrent expenditure refers to expenditures incurred
consistently (e.g. monthly). It consists of domestic interest payments,
foreign interest payments, wages and salaries, pensions and other
recurrent expenditures the bulk of which are for maintenance and
operations in the public sector. Development expenditure refers to
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expenditures incurred on development projects. It also includes
government guaranteed lending to public entities.
Deficit/Surplus (R-E)
When expenditure exceeds revenue (inclusive of grants), then a deficit
results. Conversely, when revenue exceeds expenditure, we have a
surplus.
Deficit on commitment basis
This is the deficit derived using expenditure the government is under
obligation (committed) to finance.
Deficit on cash basis
This is the deficit derived using the actual expenditure the government
has financed. It is the deficit on commitment basis adjusted for
unsettled claims on the government. Cash basis takes into account
stocks of funds paid in advance, expenditure arrears and cash in the
main government account, which is the Paymaster General (PMG).
Financing the deficit
The budget deficit can be financed through external borrowing,
domestic borrowing and sale of government shares in parastatals
(privatisation). External borrowing consists of government borrowing
from multilateral organisations, for example, the IMF and World Bank,
other countries (bilateral) and external commercial banks. Domestic
borrowing consists of government borrowing from the domestic money
and capital markets for example through treasury bills and bonds and
also through loans and advances from banking institutions. Note that
proceeds from