Kenya's current account deficit significantly widened to KSh 83.7 billion in the second quarter of 2025, marking a 76.6% increase from the previous year. This expansion was primarily driven by a larger merchandise trade deficit as exports declined and imports grew.

• The merchandise trade deficit reached KSh 348.4 billion, with exports dropping by 16.5% and imports contracting by a slower 4.5%.
• The Kenya National Bureau of Statistics reported that diaspora remittances boosted secondary income, which rose to KSh 243.1 billion, an increase of 7.3%.
• Despite the widening deficit, official reserves increased by 40% to KSh 1.535 trillion, and the overall Balance of Payments (BoP) registered a surplus of KSh 157.0 billion.

Kenya’s construction sector is experiencing a significant boom, driven by easier access to credit and robust developer financing, leading to a sharp rebound in building activity and surging property demand. The industry expanded by 5.7% in the second quarter of 2025, reversing a 3.7% contraction in the same period of 2024.

• Credit extended to enterprises in the construction sector grew by 21.7%, reaching KSh 159.6 billion by June 2025.
• The Central Bank of Kenya cut its base lending rate from 13.00% in June 2024 to 9.75% in June 2025, then to 9.50% in August.
• The HassConsult Q2 2025 Property Price Indices showed Nairobi property sales prices rose 3.75% in the three months to June, with detached homes seeing their fastest quarterly gain in nine years.

Kenya’s economy grew by 5.0% in the second quarter of 2025, outstripping the 4.6% growth in the same period last year. This expansion was primarily driven by strong performances in the agriculture and services sectors, alongside a recovery in construction and mining.

• The Kenya National Bureau of Statistics reported that agriculture, forestry, and fishing expanded by 4.4%, although sugar and tea production declined.
• The financial and insurance sector advanced by 6.6% due to lower lending rates, while construction returned to growth at 5.7% after a prior contraction.
• Inflation eased to an average of 3.89%, and the Central Bank cut the policy rate to 9.75% from 13.0%. The Nairobi Securities Exchange 20-share index surged by 47%.