Kenya’s economy continues to show steady progress, with growth gaining momentum as the government pushes ahead with reforms and stability measures.

On Tuesday, February 24, 2026, Principal Secretary Chris Kiptoo presented the 2026 Budget Policy Statement to the National Assembly’s Departmental Committee on Finance and National Planning, chaired by Kimani Kuria, MP for Molo.

In an X post by the National Treasury and Economic Planning, Kiptoo reported that Kenya’s economy expanded by an estimated 5.0 per cent in 2025. He projects growth will reach 5.3 per cent in 2026.

He attributed the outlook to several factors, including improved agricultural output, a growing services sector, and increased remittances from Kenyans living abroad.

“The PS noted that Kenya’s economy expanded by an estimated 5.0% in 2025 and is projected to grow by 5.3% in 2026, supported by enhanced agricultural productivity, sustained expansion in the services sector, and increased diaspora remittances,” Treasury stated.

The country’s external position has strengthened. Official foreign exchange reserves stood at Ksh1.56 trillion by December 2025, covering 5.2 months of imports. This is up from Ksh1.3 trillion in 2024, giving the government a larger buffer to protect the economy and boost investor confidence.

Markets soar on reforms

Capital markets performed strongly. The NSE 20 Share Index rose 52.4 per cent in January 2026 compared with January 2025, while total market capitalisation increased by over 55 per cent, marking the best performance since before the COVID-19 pandemic.

Kiptoo emphasised the government’s commitment to fiscal consolidation and key reforms. Measures include improving domestic revenue collection, controlling spending, and digitising public finance systems.

The rollout of e-procurement continues, accrual accounting is advancing, and the Treasury Single Account is expanding. Strategic Public-Private Partnerships are also growing.

Investors and markets have responded positively to these signals. Strong reserves and stock market gains reflect increased trust in the economy. The reforms focus on efficiency, transparency, and accountability in public finance management.