Nairobi, Kenya – January 6, 2026 (EAT) — Kenya’s economy expanded by 4.9 percent in the third quarter (Q3) of 2025, up from 4.2 percent during the same period last year, according to new data released by the Kenya National Bureau of Statistics (KNBS).
The latest Quarterly Gross Domestic Product (GDP) figures show that the growth was driven by stronger performance across several sectors, led by agriculture, forestry and fishing, alongside a sharp rebound in construction.
According to KNBS, the agriculture sector grew by 3.2 percent in Q3 2025, supported by improved rainfall and higher crop output. Agriculture remains the backbone of the economy and continues to employ the largest share of Kenyans.
Meanwhile, the construction sector recorded a strong turnaround, expanding by 6.7 percent after contracting by 2.6 percent in Q3 2024. As previously reported by Sauce.co.ke in its coverage of Kenya’s slowing infrastructure rollout, the sector had struggled last year due to delayed public projects and tight financing conditions.
The mining and quarrying sector also staged a major recovery. It grew by 16.6 percent, reversing a 12.2 percent contraction recorded in the same quarter last year. KNBS attributed the rebound to increased extraction activity and improved operational capacity.
Other sectors that recorded notable growth include accommodation and food services (17.7 percent), real estate (5.7 percent), financial and insurance activities (5.4 percent), transport and storage (5.2 percent), public administration (5.1 percent), wholesale and retail trade (4.8 percent), and information and communication (4.5 percent).
Backgrounder: How Kenya’s Economy Performed from Q1 to Q3 2025
The Q3 performance builds on steady growth recorded earlier in the year. In Q1 2025, Kenya’s economy expanded by 4.9 percent, driven largely by agriculture and mining, according to KNBS data earlier analysed by Sauce.co.ke.
Growth then edged higher in Q2 2025, when GDP expanded by 5.0 percent, supported by improved activity in transport, financial services, and construction. That performance came amid easing inflation, a trend previously highlighted by Sauce.co.ke in its report on declining food and fuel prices.
The 4.9 percent growth in Q3 therefore signals sustained momentum, despite pressure from higher taxes, reduced government spending, and global economic uncertainty.
Treasury and CBK Policy Context
The Q3 growth aligns with projections from the National Treasury, which has maintained that Kenya’s economy remains resilient even as the government pursues fiscal consolidation. Treasury officials have previously warned, as reported by Sauce.co.ke, that controlling debt levels while funding development remains a delicate balancing act.
At the same time, the Central Bank of Kenya (CBK) has kept a cautious monetary policy stance. The CBK’s decision to hold interest rates steady, covered extensively by Sauce.co.ke following recent Monetary Policy Committee meetings, helped stabilise inflation and support private-sector credit.
What the Numbers Mean
The latest GDP data points to broad-based growth, rather than expansion driven by a single sector. Agriculture continues to anchor the economy, while construction and services signal improving domestic demand.
However, economists caution that sustaining growth will depend on policy consistency, climate resilience, and fiscal discipline, especially as the country edges closer to the 2027 General Election
