Kenya’s Economy Grows 5.0% in Q2 2025 on Agriculture and Services
Kenya’s GDP grew 5.0% in Q2 2025, driven by agriculture, finance, and transport. Inflation eased to 3.9% as construction and mining rebounded...
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Kenya’s economy grew by 5.0% in the second quarter of 2025, outstripping the 4.6% growth in the same period last year. This expansion was primarily driven by strong performances in the agriculture and services sectors, alongside a recovery in construction and mining.
- The Kenya National Bureau of Statistics reported that agriculture, forestry, and fishing expanded by 4.4%, although sugar and tea production declined.
- The financial and insurance sector advanced by 6.6% due to lower lending rates, while construction returned to growth at 5.7% after a prior contraction.
- Inflation eased to an average of 3.89%, and the Central Bank cut the policy rate to 9.75% from 13.0%. The Nairobi Securities Exchange 20-share index surged by 47%.
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Kenya's Economy Grew 5.0% in Q2 2025 Amid Widening Trade Deficit - October 2025
Kenya’s economy grew by 5.0% in the second quarter of 2025, outstripping the 4.6% growth in the same period last year. This expansion was primarily driven by strong performances in the agriculture and services sectors, alongside a recovery in construction. The construction sector experienced a significant boom, expanding by 5.7% and reversing a 3.7% contraction in the same period of 2024, driven by easier access to credit. Despite this growth, Kenya's current account deficit significantly widened to KSh 83.7 billion in the second quarter of 2025. This marked a 76.6% increase from the previous year, an expansion primarily driven by a larger merchandise trade deficit as exports declined and imports grew.
