NAIROBI, Kenya, Jan 7 – Kenya’s current account deficit expanded further in the third quarter (Q3) of last year, driven by higher imports relative to exports.
Data from the Kenya National Bureau of Statistics (KNBS) Q3 Gross Domestic Product (GDP) and Balance of Payments (BOP) report shows that the current account deficit widened from Sh43.5 billion in Q3 2024 to Sh135.3 billion during the same period last year.
KNBS noted that the wider deficit was largely driven by an expanded merchandise trade deficit and a decline in the services account surplus.
The merchandise trade deficit, for instance, grew from Sh321.1 billion in Q3 2024 to Sh355.8 billion in the corresponding quarter of 2025, reflecting a sharper increase in import expenditure compared to earnings from total exports.
“Imports rose by Sh82.7 billion, compared to an increase of Sh48.0 billion in exports. The higher import bill was mainly attributed to increased imports of industrial machinery, iron and steel, and road motor vehicles,” KNBS said.
However, the data shows that domestic exports increased by 1.2 percent in Q3 2025 compared with the same quarter of 2024, mainly supported by higher export values of animal and vegetable oils, and cut flowers, which rose by 24.3 percent and 11.6 percent, respectively.
“Articles of apparel and clothing accessories, as well as edible products and preparations, also recorded notable increases in their values during the review period.”
