Kenya Economy Expands 5.1% in Q2 2026 Amid Global Energy Pressures

Kenya urban city

Kenya’s economy grew by 5.1% year-on-year in the second quarter of 2026. The expansion maintains a steady momentum following a solid 5.3% growth rate recorded in Q1.

The figures were released on Friday by the Kenya National Bureau of Statistics (KNBS). The performance marks an improvement from the 4.9% growth recorded in the same period last year.

Key service sectors drove the resilience. Electricity and water supply surged 7.7%, accommodation and food services expanded 7.4%, while transportation and storage accelerated to 4.4% from 3.3% a year earlier.

However, high crude oil prices capped faster expansion. Agricultural growth eased to 3.5% from 4.0% in Q2 2025, largely impacted by shorter rainfall cycles across key farming zones.

The data follows the Central Bank of Kenya holding its benchmark rate steady at 8.75%. Policymakers recently raised full-year 2026 GDP growth projections to 5.0% as credit conditions improve.

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