Kenya’s economic performance in 2025 showed steady expansion across key sectors, but the overall pace remained lower than several neighbouring countries in the East African Community, according to the 2026 Economic Survey by the Kenya National Bureau of Statistics. The report places Kenya’s growth at 4.6 per cent, even as the wider regional bloc posted stronger results.
Across the East African region, Tanzania recorded 6.0 per cent growth, Uganda reached 6.4 per cent, Rwanda led at 7.1 per cent, and Burundi followed at 5.3 per cent. These figures kept Kenya below its peers, even though all countries experienced slower growth compared to the previous year.
Kenya’s growth rate also dipped slightly from 4.7 per cent in 2024 to 4.6 per cent in 2025, despite the report noting that “positive growths in all sectors of the economy” were achieved during the year.
Sectoral performance showed mixed strength. Agriculture, forestry and fishing expanded by 3.1 per cent and continued to play a major role in the economy. Construction posted a strong recovery, moving from a 0.7 per cent contraction in 2024 to a 6.8 per cent rise in 2025.
Several service-based sectors recorded stronger growth. Accommodation and food services led with 15.6 per cent expansion, while public administration grew by 8.3 per cent. Financial and insurance activities also performed well, rising by 6.5 per cent.
Mining and quarrying registered one of the sharpest recoveries, expanding by 14.9 per cent after a contraction of 7.8 per cent in 2024, “partly driven by increased production of minerals used in cement production.”
At the regional level, the East African Community economy grew by 5.6 per cent in 2025, up slightly from 5.5 per cent in 2024. This improvement was “supported by strong performance of the service sector and manufacturing, increased infrastructure investment and deepening regional trade integration.”
Inflation in the bloc rose to 4.4 per cent from 4.1 per cent, with pressure linked to currency changes and higher debt repayment costs.
Kenya’s economy in nominal terms expanded from Sh16.2 trillion in 2024 to Sh17.6 trillion in 2025. Agriculture remained the largest contributor at 23.2 per cent of total output, while transport and storage accounted for 11.8 per cent.
On expenditure, government spending increased by 8.0 per cent, while private consumption grew by 4.7 per cent, reflecting continued domestic demand.
Income indicators also pointed upward. Gross National Income rose by 9.1 per cent to Sh17.3 trillion, while Gross National Disposable Income reached Sh18.3 trillion. GDP per capita increased to Sh329,594 from Sh309,609 the previous year.
Even with gains across production, spending, and income measures, Kenya’s slower pace compared to regional economies reflects growing competition within the East African market, as neighbours continue to benefit from stronger industrial activity, services growth, infrastructure investment and regional trade links.