Nairobi, Kenya – October 1, 2025 – Kenya’s economy expanded by 5 percent in the second quarter (Q2) of 2025, up from 4.6 percent during the same period in 2024, according to the latest data from the Kenya National Bureau of Statistics (KNBS).

Agriculture, Transport, and Finance Drive Growth

The growth was largely supported by agriculture, forestry, and fishing, which grew by 4.4 percent. The transport and storage sector expanded by 5.4 percent, while financial and insurance services recorded a strong 6.6 percent increase.

KNBS noted that construction and mining also posted a sharp rebound after contracting in Q2 2024. Construction rose by 5.7 percent, while mining and quarrying surged by 15.3 percent.

“Electricity and water supply activities also recorded improved performance in the quarter under review. This posted a growth of 5.7 percent compared to 1.2 percent in the second quarter of 2024,” KNBS said in its quarterly report.

Agriculture Sees Mixed Performance

Despite the overall uptick, agricultural Gross Value Added (GVA) slowed slightly compared to Q2 2024. However, analysts attributed the sector’s resilience to favorable weather conditions, which supported both crop and livestock production.

The performance of agriculture remains critical as the sector employs more than 40 percent of Kenya’s workforce and contributes significantly to GDP.

Broader Economic Context

The 5 percent growth comes as the government continues to push for economic reforms under President William Ruto’s administration. In August, Ruto said Kenya’s economy was forecast to grow 5.6 percent in 2025, higher than projections by the National Treasury at 5.3 percent and the Central Bank of Kenya (CBK) at 5.2 percent.

This growth also aligns with regional momentum, as East African economies continue to show resilience despite high global financing costs and external shocks such as fluctuating oil prices.

For more updates, read our dedicated coverage on Kenya’s economy and African markets.