Kenya Economy Maintains Robust Growth

Kenya’s economy advanced by 5.1% year-on-year in Q2 2026, matching Q1 growth and maintaining its strongest pace since the fourth quarter of 2024 despite persistent global headwinds. The expansion was mainly supported by stronger performance across services and key infrastructure-related sectors. Electricity and water supply expanded by 7.7%, while accommodation and food services grew by 7.4%, reflecting continued strength in tourism-related activity. Information and communication increased by 7.2%, followed by financial and insurance activities (6.1%), construction (6%) and transportation and storage (4.4%). The agriculture, forestry and fishing sector, a key pillar of the economy, rose by 3.5%, down from 3.8% in Q1 and 4% in Q2 2025, partly reflecting the early end of the long rains. On a seasonally adjusted basis, GDP rose by 1.2% quarter-on-quarter, following a 1.3% increase in the previous period.

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%), information and communication (5.0%) and manufacturing (4.4%). On a seasonally adjusted quarterly basis, the GDP rose by 1.3% in Q1, maintaining the pace seen in Q4 2025.

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.