Kenya’s economy grew by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent in the same period in 2024, according to the latest Weekly Bulletin released by the Central Bank of Kenya (CBK) on January 9, 2026.

Analysts attribute the improved performance largely to a strong rebound in the industrial sector and sustained growth in services.

Industrial and services sectors lead growth

The industrial sector expanded by 4.8 per cent in Q3 2025, reversing a contraction of -0.4 per cent in Q3 2024. This rebound has been a major driver of overall economic improvement.

Meanwhile, the services sector maintained robust growth of 5.5 per cent, supported by accommodation and food services, real estate, finance and insurance, and transport and storage activities.

“The vibrant services activity contributes to the dynamic urban landscape of Nairobi,” analysts note, while highlighting that the recovery in manufacturing and industry has strengthened employment and output across key urban centres.

Agriculture grew by 3.2 per cent compared to 4.0 per cent in Q3 2024, largely driven by increased milk production and exports of cut flowers, sustaining rural livelihoods and foreign exchange earnings.

“The economy grew by 4.9 percent in the third quarter of 2025 (Q3 2025), compared to 4.2 percent in Q3 2024. The industrial sector continued to rebound strongly in Q3 2025, expanding by 4.8 percent compared to a contraction of -0.4 percent in the same quarter of 2024,” read the bulletin.

“The services sector maintained robust growth of 5.5 per cent, supported by strong growth in accommodation and food services, real estate, finance and insurance, and transport and storage sectors. The agriculture sector grew by 3.2 percent compared to 4.0 percent in Q3 2024, on account of increases in milk production and exports of cut flowers.”

Stable currency and adequate reserves

The Kenyan shilling remained stable against major international and regional currencies during the week ending January 8, 2026, trading at Ksh 128.99 per U.S. dollar, compared with Ksh 129.01 on December 31. Foreign exchange reserves stood at USD 12,384 million, equivalent to 5.3 months of import cover, exceeding the CBK’s statutory requirement of at least four months.

Liquidity in the money market remained strong, with commercial banks’ excess reserves averaging Ksh 13.8 billion above the 3.25 per cent Cash Reserve Ratio requirement. The Kenya Shilling Overnight Interbank Average Rate (KESONIA) was stable at 8.97 per cent on January 8, 2026, compared with 8.99 per cent on December 31.

Government securities auctions also performed well. The Treasury bill auction on January 8 received bids totalling Ksh 31.3 billion against an advertised KSh 24.0 billion, representing 130.3 percent performance.

Reopened 20-year and 25-year treasury bonds on January 7 attracted bids of Ksh 71.5 billion against Ksh 60.0 billion advertised, achieving 119.2 per cent performance.