Kenya’s current account deficit for the 12 months ending February 2025 narrowed slightly to 3.1% of gross domestic product (GDP), an improvement from the 3.3% recorded during the same period in 2024.
This contraction is attributed to the stronger relative performance of goods exports, which demonstrated a notable expansion of 13.1% fueled by increased agricultural commodity exports and re-exports, the consistent and significant inflows of diaspora remittances, and a moderation in the total value of oil imports, potentially influenced by more favourable average global oil prices and strategic adjustments in import volumes under government-to-government (G-to-G) arrangements.
Revised balance of payments data for Kenya
| Indicator | Change (%) | Details |
| Current Account Deficit | -0.2 | Narrowed to 3.1% of GDP (Feb 2025) from 3.3% (Feb 2024), driven by improved exports and remittances. |
| Goods Exports | 13.1 | Growth fueled by higher agricultural exports and refined petroleum re-exports. |
| Goods Imports | 10.6 | This is due to higher demand for intermediate and capital goods for manufacturing and infrastructure. |
| Services Receipts | 14 | Boosted by increased transport and travel service earnings. |
| Diaspora Remittances | 14.5 | Continued resilience in remittance inflows, a key source of foreign exchange for Kenya. |
“The current account deficit in the 12 months to February 2025 was more than fully financed by financial account inflows, resulting in an overall balance of payments surplus of USD 1,380 million,” said the Central Bank of Kenya.
Consequently, Kenya’s gross foreign exchange reserves experienced an accumulation of USD 665.0 million, thereby strengthening the country’s external financial resilience and providing an enhanced buffer against potential external economic shocks.
These positive developments are underpinned by significant methodological enhancements implemented by the Kenya National Bureau of Statistics (KNBS) to its balance of payments (BOP) data.
These revisions aim to achieve greater accuracy and comprehensiveness in capturing cross-border economic activities, specifically targeting the more precise accounting of high-value G-to-G transactions involving petroleum imports and re-exports and integrating supplementary data sources to improve the statistical reporting of international trade in services, particularly travel and financial services.
This refined approach provides a more reliable and granular representation of regional oil product re-exports and the actual earnings derived from international tourism, ultimately contributing to a more accurate assessment of Kenya’s external economic position.
Looking ahead, the KNBS projects a further modest narrowing of the current account deficit to 2.8% of the GDP in 2025.
This optimistic projection is predicated on the expectation of continued strong performance in the export sector, sustained robust remittance inflows, and the ongoing prudent management of import expenditure.
The projected deficit is anticipated to be fully financed by sustained capital and financial inflows, leading to a projected balance of payments surplus of USD 1,380.0 million and a further increase in gross foreign exchange reserves by an additional USD 665.0 million.