Nairobi, June 14 -- Kenya's current account deficit is expected to widen to three percent of gross domestic product (GDP) this year from 2.1 percent in 2025 on higher fuel import costs and flat inflows from goods exports and diaspora remittances.

The current account represents the balance of trade on goods and services -exports and imports, remittances and tourism earnings. When in deficit, it shows that forex outflows from the country exceeded inflows, which in Kenya's case reflects the fact that the country is a net importer of goods.

The Central Bank of Kenya (CBK) said last week that the higher crude prices due to the conflict in the Middle East pose the biggest risk to the current account. The landed cost of Kenya's diesel and petr...