Kenya’s economy expanded by 4.9% in the third quarter of 2025, a significant climb from the 4.2% recorded during the same period in 2024. Data from the Kenya National Bureau of Statistics (KNBS) reveals that the acceleration was fueled by heavy momentum in industrial and service sectors. This performance underscores the resilience of East Africa’s largest economy amidst shifting global conditions.
Sector-specific gains were led by a 17.7% surge in hospitality and a 16.6% increase in mining and quarrying. The construction sector grew by 6.7%, reflecting ongoing infrastructure demand, while real estate and financial services posted gains of 5.7% and 5.4%, respectively. Agriculture also maintained a positive trajectory, expanding by 3.2% during the July-September window.
While growth remains robust, average inflation rose to 4.42%, up from 4.08% a year prior. Despite these inflationary pressures, full-year forecasts remain optimistic; President Ruto projects 5.6% growth, while the Central Bank and World Bank offer more tempered estimates ranging between 4.9% and 5.2%.
Source: Ecofin Agency
