Kenya’s economy recorded stronger growth in the third quarter of 2025, expanding by 4.9 per cent compared to 4.2 per cent during the same period in 2024.

The growth was driven by a rebound in key sectors, including construction, mining, and agriculture, according to Kenya National Bureau of Statistics.

The Agriculture, Forestry and Fishing sector grew by 3.2 per cent, supporting overall economic activity. The construction sector recovered from a 2.6 per cent contraction in the third quarter of 2024, expanding by 6.7 per cent in the quarter under review. The Mining and Quarrying sector also posted strong growth, rising by 16.6 per cent after a 12.2 per cent decline in the same quarter last year.

Other sectors that recorded notable growth include Accommodation and Food Services, which surged by 17.7 per cent. Real Estate grew by 5.7 per cent, while Financial and Insurance services rose by 5.4 per cent. Transport and Storage recorded 5.2 per cent growth, Public Administration 5.1 per cent, Wholesale and Retail Trade 4.8 per cent, and Information and Communication 4.5 per cent.

Despite this growth, some macroeconomic indicators showed mixed results. Inflation rose slightly, from an average of 4.08 per cent in the third quarter of 2024 to 4.42 per cent in the third quarter of 2025. The increase was mainly driven by higher prices in food and non-alcoholic beverages.

Shilling shows mixed performance

The Kenyan Shilling showed varied performance against major currencies. It appreciated by 0.2 per cent against the US Dollar compared to the third quarter of 2024. However, it depreciated against the Euro, Pound Sterling, South African Rand, and Japanese Yen by 6.2 per cent, 3.6 per cent, 1.6 per cent, and 0.7 per cent respectively.

Regionally, the Shilling strengthened against the Tanzanian Shilling and Ugandan Shilling, gaining 5.8 per cent and 4.1 per cent respectively.

The Central Bank of Kenya revised the Central Bank Rate (CBR) downward to 9.50 per cent in August and September 2025, from 9.75 per cent in July 2025. This compares favourably with 12.75 per cent in September 2024.

The Nairobi Securities Exchange (NSE) 20 Share Index rose sharply, from 1,776 points in September 2024 to 2,973 points in September 2025, while broad money supply (M3) increased from Ksh5,992.2 billion to Ksh6,443.7 billion.

The current account deficit widened significantly, rising from Ksh43.5 billion in the third quarter of 2024 to Ksh135.3 billion in the third quarter of 2025.

Overall, Kenya’s economy showed resilience in the third quarter of 2025, with strong sectoral recoveries driving growth. The positive performance in construction, mining, and services reflects improving business activity, while moderate inflation and a stable currency indicate a relatively balanced macroeconomic environment.

However, the widening current account deficit signals potential external pressures that will require careful management in the coming months.