Expansion driven largely by services, transport and agriculture occurs as youth-led protests persist against governance failures and heavy economic pressures.
Kenya’s economy expanded by 5.0% in the second quarter of 2025 compared to the same period last year, the Kenya National Bureau of Statistics reported, a firming from 4.6% growth in Q2 2024. The sectors that pushed growth included finance and insurance, up 6.6%, transport and storage at 5.4%, and agriculture, forestry and fishing at 4.4%, along with a notable rebound in construction.
Electricity and water supply also showed strong recovery, rising by 5.7% from just 1.2% a year earlier. Meanwhile, mining and quarrying surged by 15.3%, reversing contraction seen previously.
KNBS also pointed to easing inflation within the quarter, citing lower food and beverage prices, which gave the central bank confidence to cut its benchmark lending rate to 9.75% in June after earlier reductions. Broad money supply grew by 8.1%, reaching KSh 6.45 trillion by end-June. In foreign exchange markets, the Kenyan shilling gained 1.2% against the U.S. dollar, though it weakened against several other major currencies.
Despite the economic uptick, the gains are shadowed by widespread protests demanding accountability, better governance, and relief from the burden of daily living costs. The unrest, led largely by younger Kenyans, intensified following the death in police custody of blogger Albert Ojwang and earlier disputes over proposed tax legislation.
Demonstrations escalated in June 2025 with clashes in major cities including Nairobi, Kisumu, and Mombasa. Reports indicate that security forces used tear gas and live rounds; some protestors were killed or injured, and hundreds were arrested.
While many citizens welcomed the GDP numbers, dissenters questioned how the improved macroeconomic readings translated into relief for ordinary households grappling with rising food, transport, and energy prices. In September, inflation ticked up to 4.6%, attributed largely to higher costs in food, transport, and utilities, squeezing budgets nationwide.
The government, under President William Ruto, forecast annual growth of 5.6% and sees the Q2 performance as validation of its economic agenda. It must now contend with maintaining that growth trajectory in the face of global headwinds, climate risks, and deep social tensions. Whether the boost in output will ease public frustration over inequality, unemployment, and governance remains to be seen.
Source: Kenya National Bureau of Statistics