Kenya's Economy Grew 5.0% in Q2 2025 Amid Widening Trade Deficit - October 2025

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. The construction sector experienced a significant boom, expanding by 5.7% and reversing a 3.7% contraction in the same period of 2024, driven by easier access to credit. Despite this growth, Kenya's current account deficit significantly widened to KSh 83.7 billion in the second quarter of 2025. This marked a 76.6% increase from the previous year, an expansion primarily driven by a larger merchandise trade deficit as exports declined and imports grew.