Kenya experienced significant growth in international trade and a marked improvement in its balance of payments position during the 2024 financial year, according to the Economic Survey 2025.

Released by Kenya National Bureau of Statistics (KNBS) yesterday, the survey shows the country’s total merchandise trade grew by 5.5 per cent to Sh3.82 trillion in 2024, up from Sh3.62 trillion in 2023.

Export earnings rose by 10.4 per cent to Sh1.11 trillion, largely driven by a sharp 77.3 per cent increase in re-exports. Domestic exports also saw a modest growth of 2.9 per cent.

Imports increased at a slower pace of 3.6 per cent, from Sh2.61 trillion in 2023 to Sh2.71 trillion in 2024.

This led to a slight narrowing of the merchandise trade deficit to Sh1.59 trillion, down from Sh1.60 trillion the previous year. The export-import cover ratio improved from 38.6 per cent to 41.1 per cent. Kenya’s overall Balance of Payments (BOP) position shifted to a surplus of Sh176.7 billion in 2024, reversing a deficit of Sh134.8 billion in 2023. The current account deficit narrowed significantly by 45.4 percent to Sh208.9 billion, reflecting stronger trade performance and moderate import growth.

While net financial inflows declined marginally by 0.6 per cent to Sh246.5 billion, the stock of external assets rose from Sh4.09 trillion to Sh4.12 trillion. This growth was attributed to increases in reserve assets, portfolio investments, and foreign direct investments abroad. Reserve assets alone increased by 13.6 per cent to Sh1.30 trillion.

External liabilities

At the same time, Kenya’s external liabilities decreased by 9.2 per cent to sh12.06 trillion. This led to an improvement in the net borrowing position, which stood at Sh7.92 trillion at the end of 2024, compared to Sh9.19 trillion the previous year.

Meanwhile, the developments come as the government announced that the Finance Bill 2025 will introduce no new taxes.

Treasury CS John Mbadi said the move is intended to ease the cost of living for Kenyans.

The government plans to cut its proposed Sh4.3 trillion budget by Sh133 billion, bringing it down to approximately Sh4.2 trillion. Mbadi also highlighted several tax relief measures, including the exemption of packaging for tea and coffee from tax, a reduction in the digital asset (crypto) tax from three per cent to 1.5 per cent, and the exemption of retirees’ gratuity payments from taxation.

Additionally, changes are planned for the Income Tax Act, VAT Act, Excise Duty Act, and Tax Procedures Act.