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Kenya’s economy grew by 4.9 % year-on-year in the third quarter of 2025, up from 4.2 % in the same period last year, according to data released on Tuesday by the Kenya National Bureau of Statistics (KNBS).
“The economy recorded improved performance in the third quarter of 2025 compared to the corresponding quarter in 2024,” KNBS said.
“During the quarter under review, the economy expanded by 4.9 per cent compared to 4.2 per cent in the third quarter of 2024.”
The statistics agency said the stronger performance was driven mainly by agriculture and construction.
The construction sector rebounded sharply, expanding by 6.7 % in the third quarter of 2025 after contracting by 2.6% in the same quarter of 2024.
Agriculture, forestry and fishing grew by 3.2 %, while mining and quarrying recovered strongly, expanding by 16.6% after a contraction of 12.2% a year earlier.
“The growth was mainly supported by accelerated growths in a number of sectors,” KNBS stated.
“Notably, the Agriculture, Forestry and Fishing sector expanded by 3.2 per cent while the construction sector rebounded from a 2.6 per cent contraction in the third quarter of 2024, expanding by 6.7 per cent in the quarter under review.
“The Mining and Quarrying sector also recovered from a 12.2 per cent contraction in the third quarter of 2024, expanding by 16.6 per cent in the third quarter of 2025.”
Other sectors that recorded notable growth include Accommodation & food serving (17.7%), Real Estate (5.7%), Financial & Insurance (5.4%), Transport and Storage (5.2%), Public Administration (5.1%), Wholesale and Retail Trade (4.8%) and Information & Communication (4.5%).
KNBS said key macroeconomic indicators showed mixed performance during the quarter. “The average inflation for the quarter under review rose from 4.08 per cent in the third quarter of 2024 to 4.42 per cent in the third quarter of 2025, mainly driven by a rise in prices of items in the Food and Non-Alcoholic Beverages category,” it said.
On the currency, the agency noted that “the Kenyan Shilling appreciated by 0.2 per cent against the US Dollar compared to the corresponding quarter of 2024 but depreciated against all other major currencies.”
It added that “the Kenyan Shilling depreciated against the Euro, Pound Sterling, the South African Rand and the Japanese Yen by 6.2 per cent, 3.6 per cent, 1.6 per cent and 0.7 per cent, respectively,” but strengthened against the Tanzanian and Ugandan shillings by 5.8 per cent and 4.1 per cent, respectively.
KNBS also said monetary and financial indicators improved, stating that the Central Bank Rate (CBR) was revised downwards from 9.75 per cent in July 2025 to 9.50 per cent for both August and September 2025, compared to 12.75 per cent in September 2024.
“The NSE 20 Share Index increased from 1,776 points in September 2024 to 2,973 points in September 2025. The Broad money supply (M3) also increased from KSh 5,992.2 billion in September 2024 to KSh 6,443.7 billion in September 2025.
“The current account deficit widened markedly, increasing from KSh 43.5 billion in the third quarter of 2024 to KSh 135.3 billion in the third quarter of 2025.”
In recent years, Kenya’s economy has been under strain as a result of high debt repayments brought on by increased borrowing to finance infrastructure projects, which resulted in reduced government spending.
In August, President William Ruto said the economy was expected to grow by 5.6 per cent in 2025, compared with 4.7 per cent in 2024.
The World Bank also raised its estimate for Kenya’s economic growth last year to 4.9 per cent from 4.5 per cent, citing a recovery in the construction sector.
The lender said some key industries, including construction, struggled in 2024 amid concerns over government finances, but signs of recovery have begun to emerge.
