Trade Gap Pushes Kenya’s Current Account Deficit to KSh 83.7Bn
Kenya’s current account deficit widened 77% in Q2 2025 to KSh 83.7Bn, driven by a larger trade gap, weaker exports, and rising debt despite stronger reserves..
✨ Key Highlights
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.
Continue Reading
Read the complete article from The Kenyan Wall Street
Part of the Day's Coverage
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.
