Kenya’s economy grew by 4.6% in 2025, according to data released by the Kenya National Bureau of Statistics on Wednesday, representing a marginal deceleration from the 4.7% recorded in 2024.
The statistics office attributed the performance to sustained activity in the services sector and a recovery in agricultural output, which helped offset the impact of high interest rates and inflation.
Despite the 0.1% dip, the figures suggest the East African powerhouse is maintaining stability while navigating fiscal consolidation measures and significant external debt repayment obligations that characterized the last fiscal year.
Economists note that the resilience of the shilling and improved tea and horticultural exports provided the necessary buffers to keep the growth rate near the 5% medium-term target.
This performance comes as the Central Bank of Kenya monitors cooling inflation, which averaged 5.2% in late 2025 and 4.4% in march 2026 providing a platform for potential monetary easing to stimulate private sector credit.
However, In March, Kenya’s private sector slid into contraction for the first time in seven months, with Purchasing Managers’ Index (PMI) dropping to 47.7, down from 50.4 in February. It was driven by the geopolitical tensions in the Middle East and a sharp rise in domestic costs stifled new orders and production.
With the 2026 outlook currently projected at 4.5%, the government is expected to prioritize infrastructure and digital economy investments to accelerate growth beyond the current marginal slowdown.
