NAIROBI, Kenya – Kenya’s economy expanded by 4.6 percent in 2025, marking the slowest economic growth rate in 12 years, excluding the contraction recorded during the COVID-19 pandemic.
According to official data released on Wednesday, April 29, 2026, by the Kenya National Bureau of Statistics (KNBS), the outturn fell short of the National Treasury’s 5.0 percent growth target.
The figure was broadly in line with the 4.7 percent expansion registered in 2024, signaling a period of moderated economic momentum.
The KNBS Economic Survey indicates that growth remained relatively broad-based, underpinned by steady activity in key productive sectors including agriculture, construction, and mining—industries that continue to anchor the country’s output and employment landscape.
Looking ahead, KNBS projects a modest recovery to 4.9 percent growth in 2026.
However, the outlook is clouded by emerging external risks, notably the ongoing U.S.-Israeli war against Iran, which has been flagged as a potential disruptor to global energy markets.
The agency cautioned that the conflict could trigger fuel supply constraints and elevate import costs, exposing Kenya’s import-dependent economy to heightened inflationary pressures.
These developments may erode consumer purchasing power and increase production costs, ultimately weighing on overall economic performance and growth prospects.
