Kenya's economy grows 5 per cent in second quarter of 2025- KNBS
The statistics body attributes the growth largely to robust performances in agriculture, forestry and fishing, which recorded a 4.4 per cent growth, transportation and storage (5.4 per cent), and financial and insurance activities (6.6 per cent).
Commendable growth in key sectors powered Kenya’s economy in the three months to June, with the country recording a 5.0 per cent expansion, according to the latest data by the Kenya National Bureau of Statistics (KNBS).
The record marks a slight improvement from the 4.9 per cent growth posted in the previous quarter and a stronger performance compared to the 4.6 per cent recorded in the same period last year.
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The statistics body attributes the growth largely to robust performances in agriculture, forestry and fishing, which recorded a 4.4 per cent growth, transportation and storage (5.4 per cent), and financial and insurance activities (6.6 per cent).
“The growth was also supported by rebounds in construction and mining and quarrying activities that rose by 5.7 and 15.3 per cent, respectively, after contracting in the second quarter of 2024,” KNBS said in the Q2 GDP report.
Electricity and water supply activities also recorded improved performance during the quarter, posting a growth of 5.7 per cent compared to 1.2 per cent growth in the corresponding period the previous year.
Notably, in the Agriculture sector, the Gross Value Added (GVA) for agricultural activities recorded a slight deceleration compared to the corresponding quarter of 2024.
KNBS, however, maintains a brave face, saying favourable weather conditions continued to support both crop and animal production during the review period.
Nevertheless, the report notes that the quarter under review recorded improved performance in most of the key macroeconomic indicators.
“The average inflation for the second quarter of 2025 eased to 3.89 per cent from an average of 4.87 per cent in a similar quarter of 2024 on account of lower prices of food and non-alcoholic beverages.”
The Kenyan Shilling also strengthened against the US Dollar by 1.2 per cent.
In contrast, the local currency weakened against other major international currencies, including the Japanese Yen, the Pound Sterling, and the Euro, by 6.5 per cent, 4.5 per cent, and 4.0 per cent, respectively.
Regionally, the Kenyan Shilling weakened against the Ugandan Shilling and the South African Rand by 2.7 per cent and 0.5 per cent, respectively, but appreciated against the Tanzanian Shilling.
The Central Bank Rate (CBR) was lowered to 10.00 per cent for both April and May 2025 and further to 9.75 per cent in June 2025, compared to 13.00 per cent in June 2024.
Broad money supply (M3) rose by 8.1 per cent during the quarter to stand at Sh6.45 trillion at the end of June.
Similarly, the NSE 20 Share Index rose from 1656.5 points in June 2024 to stand at 2440.3 points in June 2025, representing a 47.0 per cent growth.
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