MEFMI provides technical assistance to Kenya on Private Capital Flows Survey

The increasing importance of foreign private capital (FPC) flows and the need to understand their impact, highlights the compelling need for reliable, accurate and consistent statistics in line with international standards. For countries to effectively collect FPC data, it is recommended that they adopt survey-based collection systems as an alternative to obtaining the data through the International Transactions Reporting System (ITRS). Like many MEFMI member countries, Kenya has advanced efforts to conduct FPC surveys more regularly. The surveys are conducted by the Kenya National Bureau of Statistics (KNBS), in collaboration with the Central Bank of Kenya (CBK) and Kenya Investment Authority (KIA).

Following the implementation of their 2020 FPC survey, KNBS requested MEFMI for technical assistance to support the processing of the survey data using the MEFMI Private Capital Flows Monitoring System (PCMS). The mission was conducted virtually from 14 to 29 January 2021, and was attended by 26 officials from CBK, KIA and KNBS. There was equal gender representation in the participants.

The main objective of the mission was to interrogate the survey returns, guide the process of data capture and validate the survey output to ensure consistency. The mission followed a three-pronged approach to deliver its work – methodological review, training, and data validation. The participants were trained on BPM6 methodological concepts underlying compilation of FPC data.  They were also equipped with knowledge on interpreting financial statements for validation of survey returns. In addition, participants were equipped with skills to use the PCMS for data capture and reporting while survey output was validated to ensure consistency of data. Furthermore, recommendations which aimed to strengthen the FPC survey management process including the survey instrument, were provided.  The technical assistance mission is expected to lead to effective reporting of the FPC survey data in Kenya’s Balance of Payments and International Investment Position.

Prepared by Vivian Namugambe