Kenya’s economy grows 4.9% in first quarter of 2025

Kenya’s Economy Grows 4.9% in First Quarter of 2025
The Kenyan economy grew by 4.9% year‑on‑year in the first quarter of 2025, the Kenya National Bureau of Statistics reported on July 3.
This figure reflects a continuation of East Africa’s largest economy’s modest expansion trajectory, with all major sectors recording positive growth.
The growth was principally driven by agriculture and manufacturing, aided by favourable weather which supported crop and livestock production.
However, some sectors saw slower momentum: the accommodation and food‑services industry grew only 4.1% (down from 38.1% the previous year) while the information & communication sector rose 5.8% (versus 9.2% a year earlier).
The slowdown in these service segments highlights how uneven the recovery remains even as the macro‑environment stays stable.
Reactions to the data have been cautiously optimistic. Government officials welcomed the result as evidence of resilience amid global headwinds, while economists pointed out that sustaining growth will depend on structural reforms and external conditions. The finance ministry projects growth of approximately 5.3% for both 2025 and 2026.
Yet risks remain, including unpredictable global trade shifts and weather extremes given Kenya’s reliance on agriculture.
Looking ahead, the key challenge will be translating this Q1 growth into a stronger full‑year performance. To do that, Kenya must deepen the industrial base, boost private‑sector credit, strengthen service sector recovery and insulate the economy from climate and external shocks. If these conditions are met, the 5%+ growth target may be within reach; if not, Kenya may find its growth anchored in the mid‑4% range for longer than expected.