Economy grows 5.0% in Q2 2025, inflation edges up to 4.6%
By Chemtai Kirui, NAIROBI,
The economy expanded by 5.0% year-on-year in the second quarter of 2025, up from 4.6% in the same quarter last year, says the Kenya National Bureau of Statistics(KNBS).
The performance marked steady momentum after a 4.9% growth in the first quarter of 2025. Growth was supported by agriculture, transport, and financial services, though official sectoral data is yet to be fully released.
According to KNBS and the Central Bank, the figures signal a stable economic environment, with expansion in key sectors and inflation still within target despite slight increases in food, transport, and housing costs.
On the price front, inflation rose slightly to 4.6% in September from 4.5% in August, driven by higher food, transport and housing costs. Month-on-month inflation stood at 0.2%, remaining well within the central bank’s target range of 2.5% to 7.5%.
Monetary policy has been eased, with the Central Bank reducing its benchmark rate by 75 basis points to 10.0% in April to spur lending and investment.
The Treasury reports a fiscal deficit of KSh 701.3 billion (about 4.0% of GDP) for the nine months to March 2025. The Central Bank says inflation remains within target, while the World Bank projects full-year growth at 4.5 percent, citing high public debt, tight private sector credit, and fiscal pressures.
