Kenya’s economy expanded by 4.9% year-on-year in the first quarter of 2025, maintaining a growth rate similar to the same period last year, driven mainly by gains in agriculture and manufacturing, Reuters reported.
As East Africa’s largest economy, Kenya continues on a path of steady growth but faces challenges from global trade tensions, market fluctuations, and extreme weather, according to the finance ministry.
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“All sectors of the economy recorded positive growths during the quarter under review, albeit in varying magnitudes,” the Kenya National Bureau of Statistics said in a statement.
The growth was also supported by favorable weather conditions across most regions involved in crop and livestock production.
However, some sectors saw slower expansion. The accommodation and food service industry’s growth sharply declined to 4.1%, down from a 38.1% surge in the first quarter of 2024.
The information and communication sector grew by 5.8%, compared to 9.2% a year earlier, while financial and insurance activities expanded by 5.1%, down from 9.6% in the same quarter last year.
Looking ahead, the finance ministry projects the economy will grow by 5.3% in both 2025 and 2026, supported by a stable macroeconomic environment.
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Image Credi:AA
