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Kenya’s Growth Holds Steady but Loses Momentum in 2025

Kenya’s Growth Holds Steady but Loses Momentum in 2025
Friday, 01 May 2026 14:27
  • Growth eased to 4.6% in 2025, down from 4.7% a year earlier

  • Mining, construction, and services sectors drove expansion

  • Trade deficit widened as imports outpaced export growth

Kenya’s economy grew by 4.6% in 2025, a slight slowdown from 4.7% in 2024, according to the Kenya National Bureau of Statistics (KNBS) in its 2026 Economic Survey released on April 29.

Despite the marginal dip, the country’s growth rate remained above the global average of 3.3% and slightly ahead of the 4.4% recorded across sub-Saharan Africa.

The performance was supported by strong gains in several sectors, including mining and quarrying, which expanded by 14.9%, and construction, up 6.8%. The KNBS also highlighted solid growth in hospitality (15.6%), public administration (8.3%), financial and insurance services (6.5%), information and communication (4.8%), transport and storage (3.7%), and wholesale and retail trade (3.6%).

Agriculture, which accounted for 23.2% of GDP, delivered a weaker performance. The sector grew by 3.1% in 2025, down from 4.4% the previous year. The slowdown was largely attributed to uneven weather patterns, with above-average long rains and below-average short rains affecting overall output.

Within food crops, production of maize, millet, and potatoes increased, while bean output declined. Among cash crops, most segments posted gains, except for tea and sugarcane.

Trade gap widens as imports outpace exports

Kenya’s trade balance deteriorated over the year. The trade deficit widened from 1,600 billion Kenyan shillings ($12.4 billion) in 2024 to 1,700 billion shillings in 2025, driven by a faster rise in imports (+2.5%) compared with export growth (+0.6%).

Africa remained Kenya’s top export market, generating 452.8 billion shillings in revenue. This performance was largely fueled by strong intra-regional trade within the East African Community, particularly with Uganda, where demand for Kenyan goods surged by 28.8%, accounting for 14.5% of total export earnings.

On the import side, Asia strengthened its position as Kenya’s leading supplier, accounting for 70% of total imports in 2025, up from 66.4% the previous year. In contrast, Kenyan exports to Asia fell by 13.2%, reaching 275.7 billion shillings.

Espoir Olodo

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