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 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%.