Kenya's economy grows by 4.9pc in Q3 2025 - KNBS report
Business
By
Esther Nyambura
| Jan 06, 2026
Kenya’s economy grew by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent in the same period in 2024, according to a report by the Kenya National Bureau of Statistics (KNBS).
The growth was driven by key sectors including construction, mining, and agriculture.
Agriculture, Forestry and Fishing sector grew by 3.2 per cent, supported by a 9.7 per cent increase in milk deliveries to processors and a 36.2 per cent rise in cut flower exports.
“The growth in agriculture was mainly driven by increased milk production and flower exports,” the report noted.
Exports of coffee, vegetables, and fruits, however, declined, while production of sugarcane and tea also fell.
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The construction sector also grew from 2.6 per cent in Q3 2024 to 6.7 per cent in 2025. This was boosted by a 16.2 per cent rise in cement consumption, higher imports of iron and steel, and increased credit to construction enterprises from Sh129.2 billion to Sh195.3 billion.
Other sectors that performed well include Accommodation and Food Services (17.7 per cent), Real Estate (5.7 per cent), Financial and Insurance (5.4 per cent), Transport and Storage (5.2 per cent), Public Administration (5.1 per cent), Wholesale and Retail Trade (4.8 per cent), and Information and Communication at 4.5 per cent.
The Mining and Quarrying sector also recorded a 16.6 per cent growth, recovering from a 12.2 per cent contraction in the third quarter of 2024.
The Financial and Insurance sector, however, recorded slower growth, expanding by 5.4 per cent compared to 7.3 per cent in Q3 2024. The Kenyan Shilling appreciated by 0.2 per cent against the US Dollar but weakened against the Euro (6.2 per cent) and Pound Sterling (3.6 per cent).
Average inflation also rose to 4.42 per cent from 4.08 per cent, mainly due to higher food and beverage prices.