Kenya Economy Gains Traction in Q1

Kenya's economic growth accelerated to 5.3% year-on-year in Q1 2026 from 4% in the previous period, marking the strongest expansion since the last quarter of 2024. The pickup was driven by broad-based gains across all sectors, with the key agricultural sector rebounding strongly. Agricultural output rose 4.9%, reversing a 1.3% contraction in Q4, amid improved weather conditions. Tea production (3.1%), cane deliveries (6.2%), , milk deliveries to processors (2.2%) and cut flower exports (4.3%) recorded notable growth, offsetting lower coffee production. Other key contributors included accommodation and food services (14.7%), mining and quarrying (9.1%), construction (6.6%), financial and insurance activities (6.3%), and information and communication (5.0%). On a seasonally adjusted quarterly basis, the GDP rose by 1.3% in Q1, the same pace as in Q4.

Kenya’s economy advanced by 4.0% year-on-year in Q4 2025, the slowest expansion since Q1 2021, compared to a downwardly revised 4.8% rise in the previous period. The key agricultural sector contracted by 1.3%, after growing 3.8% in the preceding period, amid lingering effects of last year’s drought, weighing on overall growth. At the same time, output slowed in some activities such as accommodation & food services (18.3% vs 23.6% in Q3); professional, administrative & support services (2.1% vs 7.1%); education (2.1% vs 3.9%) and manufacturing (1.1% vs 2.7%). On a seasonally adjusted quarterly basis, the GDP rose by 1.1%. The economic growth slowed to 4.6% in 2025 from a revised 4.7% in 2024, mainly weighed down by weaker agricultural output (3.1% vs 4.4%) due to erratic rainfall and slower manufacturing activity (2% vs 3%). Transport, tourism, and information and communication also posted softer growth, while construction rebounded.

The economy of Kenya expanded by 4.9% year-on-year in Q3 2025, following a 5% advance in the previous period, amid improved performance across several sectors. The agriculture sector, rising 3.2% and accounting for roughly a quarter of GDP, remained the primary driver of growth, underpinned by stronger milk production and robust cut-flower exports. Other key contributors included accommodation and food services (+17.7%), mining and quarrying (+16.6%), construction (+6.7%), real estate (+5.7%), financial and insurance activities (+5.4%), transport and storage (+5.2%), public administration (+5.1%), wholesale and retail trade (4.8%), and information and communication (+4.5%). On a seasonally adjusted basis, the GDP expanded by 1.2% in Q3, the same pace as in the previous period.