Kenya’s economy grew by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent in the same period of 2024, according to the Kenya National Bureau of Statistics (KNBS)
The agriculture, forestry and fishing sector expanded by 3.2 per cent, supported by higher milk deliveries to processors and a rise in cut flower exports, despite lower output in some crops such as coffee, vegetables, and fruits.
Construction activity rebounded, growing by 6.7 per cent after a contraction in the previous year. The recovery was driven by higher consumption of cement, increased imports of steel and bitumen, and improved credit flows to construction firms.
The mining and quarrying sector grew by 16.6 per cent, reversing a decline from the previous year, reflecting increased activity and resumed operations across the sector.
Manufacturing expanded by 2.5 per cent, mainly supported by non-food production, while some sub-sectors like food processing lagged.
Several service sectors recorded solid growth. Transport and storage grew by 5.2 per cent, supported by increased activity in road, water, and air transport.
Real estate, financial and insurance services, and information and communication also posted steady gains.
Inflation averaged 4.4 per cent in the quarter, slightly higher than the previous year, primarily due to rising prices for food and non-alcoholic beverages.
The Kenyan shilling had a mixed performance, appreciating slightly against the US dollar but weakening against other major currencies, including the euro and pound sterling.
The current account deficit widened, driven by higher imports and slower export performance, highlighting external pressures on the economy.
Business indicators demonstrated resilience, with the private sector’s Purchasing Managers’ Index (PMI) above the expansion threshold, reflecting stronger demand, rising sales, and higher employment, although input prices continued to be a concern.
Overall, Kenya’s economy demonstrated broad-based growth across agriculture, industry, and services, supported by a recovery in construction and mining.
Moderate inflation and stable credit conditions indicate resilience, but external imbalances and rising imports remain key challenges for policymakers.
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