Kenya’s economy grew by 4.9% year-on-year in the first quarter of 2025, maintaining a similar pace to the same period in 2024.
This steady expansion was largely driven by robust growth in agriculture and manufacturing sectors, the Kenya National Bureau of Statistics reported. Favourable weather conditions across key farming regions supported increased crop and livestock production, contributing significantly to the positive economic performance.
However, not all sectors experienced the same momentum. The accommodation and food services sector saw a sharp slowdown, growing just 4.1%, down from a remarkable 38.1% in the first quarter of 2024.
Similarly, the information and communication sector’s growth declined to 5.8% from 9.2%, while financial and insurance activities expanded by 5.1%, a drop from 9.6% the previous year.
- Advertisement -
Despite these sectoral challenges, Kenya remains on a path of sustained economic growth as East Africa’s largest economy. The finance ministry has projected an overall growth rate of 5.3% for both 2025 and 2026.
This optimistic outlook is supported by a stable macroeconomic environment but tempered by risks including global trade disputes, market volatility, and adverse weather conditions.
Overall, Kenya’s economy continues to show resilience and steady progress.
