Kenya’s economy recorded resilient growth in the third quarter of 2025, expanding by 4.9% year-on-year, according to official data. The performance marks a notable improvement compared to the same period in the previous year and underscores the country’s growing economic diversification beyond its traditional pillars.The strong showing was largely supported by agriculture, construction, and mining, sectors that have increasingly played a stabilising role amid global economic uncertainty. Agriculture, long considered the backbone of Kenya’s economy, benefited from improved weather conditions, better farm input access, and sustained demand for both domestic consumption and exports. Increased output in key crops helped cushion the economy against weaknesses in other areas.The construction sector also emerged as a major contributor to growth, supported by ongoing public infrastructure projects and a gradual recovery in private real estate development. Investments in roads, housing, and commercial buildings continued to stimulate demand for labour and materials, creating positive spillover effects across manufacturing and services. This activity reflects sustained government spending on development projects and cautious optimism from private investors.
Meanwhile, mining activity recorded steady expansion, driven by higher production and renewed investment in extractive industries. While mining remains a smaller contributor relative to agriculture and services, its improved performance highlights Kenya’s efforts to unlock underutilised natural resources and diversify revenue streams. The sector’s growth also signals increasing investor interest in minerals as global demand for raw materials remains strong.The 4.9% GDP growth rate represents a pickup from the previous year, when the economy faced headwinds from high inflation, tight financial conditions, and subdued consumer spending. In Q3 2025, easing inflationary pressures and relatively stable macroeconomic conditions supported household consumption and business activity. Although borrowing costs remained elevated, improved confidence helped sustain economic momentum.
Importantly, the latest growth figures reflect a gradual shift away from overreliance on traditional sectors, such as agriculture alone or services concentrated in urban areas. The broader contribution from construction and mining suggests a more balanced economic structure, which could enhance resilience to sector-specific shocks in the future.However, challenges persist. Rising public debt, global economic uncertainty, and climate-related risks continue to pose threats to sustained growth. Policymakers will need to maintain prudent fiscal management, support private sector investment, and strengthen productivity across sectors to keep the economy on a stable growth path.Overall, Kenya’s 4.9% GDP growth in Q3 2025 signals resilience and adaptability. With continued diversification and targeted reforms, the economy appears better positioned to withstand external pressures and support medium-term development goals.
