Kenya’s economy expanded by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent recorded in the corresponding period of 2024, according to data released on Tuesday, January 6, by the Kenya National Bureau of Statistics (KNBS).
The statistics office said the acceleration in growth was driven by strong performances in construction, mining, hospitality and real estate sectors.
Construction output grew by 6.7 per cent during the period, while mining and quarrying expanded sharply by 16.6 per cent. Accommodation and food services recorded a 17.7 per cent increase, reflecting improved activity in the hospitality sector, the KNBS data showed.
Real estate grew by 5.7 per cent, while financial and insurance activities expanded by 5.4 per cent. Transport and storage services also posted growth of 5.2 per cent, according to the bureau.
Agriculture, forestry and fishing, a key sector of the economy, grew by 3.2 per cent between July 1 and September 30, 2025.
KNBS noted that inflation averaged 4.42 per cent in the third quarter, slightly higher than the 4.08 per cent recorded a year earlier. The increase was largely attributed to rising prices of food and non-alcoholic beverages.
In August 2025, President William Ruto projected that East Africa’s largest economy would grow by 5.6 per cent in 2025, compared with 4.7 per cent in 2024. The forecast is higher than projections by the Finance Ministry at 5.3 per cent, the Central Bank of Kenya at 5.2 per cent and the World Bank at 4.9 per cent.
