Kenya’s external balance deteriorated in Q3 2025 as imports surged, services weakened, and pressure mounted on foreign reserves.
Kenya’s current account deficit widened sharply to 3.17% of GDP in Q3 2025, up from 1.12% in Q3 2024, reaching KSh 135.3 billion against GDP of KSh 4.26 trillion. The increase ended a consolidation phase seen between 2023 and 2024, when the ratio largely stayed below 2%.
The deterioration was driven by imports rising faster than exports and a weakening services buffer. While exports grew by KSh 48.0 billion, imports expanded by KSh 82.7 billion, pushing the merchandise trade deficit to KSh 355.8 billion. Higher spending on machinery, iron and steel, and vehicles weighed heavily.
Services provided less support, with the net surplus falling to KSh 57.2 billion from KSh 100.6 billion a year earlier. Remittances were flat, offering limited relief. Weaker external financing forced a KSh 63.7 billion reserve drawdown, tightening policy space for the Central Bank of Kenya.
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