Kenya’s economy grew steadily in the second quarter of 2025, supported by a strong rebound in the industrial sector and sustained performances in services and agriculture, according to the latest CBK weekly bulletin.

Overall growth stood at 5.0 percent in Q2 2025, compared to 4.6 percent during the same period in 2024. The industrial sector posted the most significant turnaround, expanding by 4.0 per cent from 0.2 per cent in Q2 2024.

“The economy grew by 5.0 percent in the second quarter of 2025, compared to 4.6 percent in a similar quarter of 2024, mainly driven by a rebound in activity in the industrial sector, resilience of key service sectors, and stable growth of the agriculture sector,” read the CBK bulletin dated October 3, 2025.

Manufacturing grew by 1.0 per cent, while electricity and water supply rose by 5.7 per cent. Construction also increased by 5.7 per cent, while mining and quarrying registered notable growth of 15.3 per cent. The performance reflects renewed investment in infrastructure, manufacturing, and resource extraction activities.

The services sector maintained stable growth at 5.7 per cent, slightly lower than 6.1 per cent in the previous year.

“The industrial sector grew by 4.0 percent, compared to 0.2 percent in a similar quarter of 2024. The services sector recorded a growth of 5.7 per cent compared to 6.1 per cent in a similar quarter of 2024, mainly supported by the resilient performance of transport and storage, finance and insurance, information and communication, and wholesale and retail trade sectors. Growth of the agriculture sector remained stable at 4.4 per cent compared to 4.5 per cent in a similar quarter of 2024.”

Services remain resilient

Transport and storage grew by 5.4 percent, finance and insurance by 6.6 percent, and information and communication by 6.0 percent.

Wholesale and retail trade rose by 4.0 percent, while accommodation and food services increased by 7.8 percent. Public administration remained steady at 6.0 per cent.

These trends underline the sector’s continued resilience, supported by digital services, logistics, and financial intermediation.

Agriculture provides stability

Agriculture recorded stable growth of 4.4 per cent, close to 4.5 per cent in the same quarter last year. Consistent crop and livestock output helped anchor overall growth despite weather-related risks.

According to the CBK, non-agriculture activities grew by 5.1 per cent, while taxes on products contributed 3.3 per cent.

Financial markets remained stable, with usable foreign exchange reserves at USD 10,717 million, covering 4.7 months of imports.

“The usable foreign exchange reserves remained adequate at USD 10,717 million (4.7 months of import cover) as of October 2. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.”

The NSE 20 index gained 1.00 per cent, reflecting investor confidence.

“At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 0.65 per cent, 0.92 per cent and 1.00 per cent, respectively, during the week ending October 2, 2025. Market capitalisation increased by 0.65 per cent, while total shares traded and equity turnover decreased by 40.48 per cent and 63.53 per cent, respectively.”

The CBK’s monetary operations kept excess reserves at Ksh 5.4 billion, supporting a stable financial environment for economic activity.

“The money market remained liquid during the week ending October 2. Open market operations remained active. Commercial banks’ excess reserves stood at Ksh 5.4 billion in relation to the 3.25 per cent cash reserves requirement (CRR),” read the CBK report in part.