Kenya’s real Gross Domestic Product (GDP) grew by 4.6 per cent in 2025 compared to a growth of 4.7 per cent in 2024 supported by positive growths in all sectors of the economy, according to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2026.
The Economic Survey 2026, indicates that the nominal GDP increased from KSh 16,232.3 billion in 2024 to KSh 17,577.6 billion in 2025 respectively.
Sector performance
The report shows that the Agriculture, Forestry and Fishing sector, which accounts for over 20 per cent of the total economy, expanded by 3.1 per cent. In particular, the Agriculture sector GDP contribution peaked to 23.2 per cent.
The 7.8 per cent contraction witnessed in 2024 in the Mining and Quarrying sector, increased to 14.9 per cent. This was driven by increased production of minerals used in cement production.
Other sectors that experienced significant growth are:
- Accommodation & Food Service (15.6%)
- Public Administration (8.3%)
- Financial & Insurance (6.5%)
- Information and Communication (4.8%)
- Transportation and Storage (3.7%)
- Wholesale and Retail Trade (3.6%)
Employment growth
Employment increased to 21.6 million in 2025 compared to 20.8 million in 2024. The increase in employment is a result of the 822.1 thousand new jobs created in 2025. The informal sector stands out for creating 82.7 per cent of the jobs in 2025.
To add on, the informal sector employment rate rose by 716.8 thousand jobs at 18.1 million.
The report also shows, “The construction industry experienced the most significant growth, with a rise of 6.7 per cent.”
Inflation
The decline in fuel prices, electricity, and cooking gas in 2025, brought down the annual inflation to 4.1 per cent compared to 4.5 per cent in 2024.
Expenditure
In 2025, the final government consumption expenditure rose by 8.0 per cent. On the other hand, the private consumption expenditure increased by 4.7 per cent.
There was a 9.1 per cent increase in Gross National Income at KSh 17,301.5 billion in 2025 compared to KSh 15,865.2 billion in 2024.
The report shows, “ Gross National Disposable Income expanded from KSh 16,890.9 billion to KSh 18,257.6 billion in 2025. During the same period, GDP per capita increased to KSh 329,594 up from KSh 309,609 in 2024.”
Revenue
The National Government projects KSh 3,383.0 billion in revenue for the 2025/26 financial year, including ordinary revenue and grants. Meanwhile, total expenditure is expected to rise to KSh 4,270.0 billion over the same period.
For the Financial Year 2025/26, the county governments’ revenue is projected to increase by 9.4 per cent to KSh 543.9 billion. The report also indicates, “Total expenditure is expected to increase by 21.0 per cent to KSh 598.7 billion in 2025/26.”
