NAIROBI, Jan 7 – Kenya’s economy grew by 4.9% year on year in the third quarter of 2025, up from 4.2% in the same period a year earlier, according to data released by the Kenya National Bureau of Statistics.
The statistics agency said the expansion was driven primarily by agriculture and construction. The construction sector rebounded strongly, swinging from a contraction of 2.6% in the third quarter of 2024 to growth of 6.7% in 2025, reflecting improving confidence and easing financial pressures.
Agriculture also made a significant contribution, while a recovery in mining and quarrying provided additional support to overall output.
Kenya’s economy has faced pressure in recent years from heavy debt servicing costs after a period of increased borrowing to fund infrastructure development. This has pushed the government to pursue fiscal consolidation measures to stabilise public finances.
In August, President William Ruto said the economy was expected to grow by 5.6% in 2025, up from 4.7% in 2024. The World Bank has also upgraded its assessment, raising Kenya’s growth estimate for last year to 4.9% from 4.5%, citing renewed momentum in the construction sector.
Several key industries, particularly construction, struggled in 2024 amid concerns over government finances. According to the World Bank, those headwinds have begun to ease, supporting a broader economic recovery.
