Kenya’s economy expanded by 4.9% year-on-year in the first quarter of 2025, maintaining a pace similar to that of the same period last year, driven by growth in sectors such as agriculture and manufacturing, according to the national statistics office.
The largest economy in East Africa remains on a sustained economic growth path, but faces risks stemming from global trade conflicts, market volatility, and extreme weather conditions, according to the Ministry of Finance.
“All sectors of the economy recorded positive growth during the review quarter, albeit at varying magnitudes,” said the Kenya National Bureau of Statistics in a statement.
It added that performance was also supported by favorable weather conditions in most regions involved in crop and livestock production.
However, growth in the accommodation and food services sector slowed sharply, from 38.1% in Q1 2024 to 4.1%.
The information and communication sector grew by 5.8%, compared to 9.2% a year earlier, while financial and insurance activities also experienced a slowdown.
The Ministry of Finance projects the economy will grow by 5.3% in both 2025 and 2026, supported by a stable macroeconomic environment.
