Kenya’s economy recorded a 4.9 percent growth in the first quarter of 2025, mirroring the performance registered during the same period in 2024, according to the latest Quarterly Gross Domestic Product (GDP) report released by the Kenya National Bureau of Statistics (KNBS).
The sustained growth was largely driven by strong performance in the Agriculture, Forestry, and Fishing sector, which expanded by 6.0 percent compared to 5.6 percent in Q1 2024. KNBS attributed this improved agricultural performance to favorable weather conditions that prevailed in most parts of the country, supporting both crop and livestock production.
Agricultural output saw notable increases in key subsectors. The volume of milk delivered to processors rose from 218.8 million litres in the first quarter of 2024 to 250.6 million litres in the same period this year. Additionally, coffee exports jumped significantly, from 9,722.3 metric tonnes to 16,894.4 metric tonnes an increase of over 73 percent.
The growth momentum was also supported by various service sectors. The Information and Communication sector grew by 5.8 percent, Wholesale and Retail Trade by 5.4 percent, Real Estate by 5.3 percent, and Financial and Insurance activities by 5.1 percent. Public Administration recorded a robust growth of 6.5 percent, underlining increased government spending and activities during the quarter.
Transport and Storage, as well as Professional, Administrative, and Support Services, also made notable contributions with growth rates of 3.8 percent and 4.6 percent, respectively.
The KNBS report signals a stable economic trajectory despite prevailing global and domestic challenges. The positive performance in agriculture traditionally a key employer and contributor to GDP combined with resilient service sectors, offers optimism for continued economic recovery and expansion.
With favorable weather patterns and improved export performance in key commodities, Kenya’s economic outlook remains cautiously optimistic as the country moves into the second half of 2025. However, economists emphasize the need for continued investment in productivity, market access, and infrastructure to sustain and accelerate this momentum.
