Josiah K. Kimani  ·  Kenya  ·  April 2026
Economic Survey
2026

An independent digest of Kenya's 2025 economic performance — covering 18 sectors, GDP, employment, trade, and social indicators.

4.6%
Real GDP Growth 2025
↓ from 4.7% in 2024
KSh 17.6T
Nominal GDP
↑ 8.3% year-on-year
21.6M
Total Employment
↑ 822,100 new jobs
4.1%
Annual Inflation
↓ from 4.5% in 2024
🇰🇪

This is an independent civic data digest, compiled as part of ongoing work on techno-democracy and economic governance in Africa. All figures are sourced directly from the KNBS Economic Survey 2026 (ISBN 978-9966-102-53-9). This summary is not affiliated with or endorsed by KNBS.

Nominal GDP 2025
KSh
17.6T
▲ 4.6% Real Growth
Real GDP Growth Rate (%) — 2021 to 2025
7.6%
2021
4.8%
2022
5.6%
2023
4.7%
2024
4.6%
2025
KSh 329,594
GDP Per Capita (Current)
↑ from KSh 309,609
3.3M
Modern Sector Wage Employment
↑ 3.1%
3,139
NSE 20 Share Index
↑ from 2,011
9.0%
Central Bank Rate (Dec 2025)
↓ from 11.25%
KSh 11.4T
Total Public Debt (Jun 2025)
↑ 14.5%

Economic Sectors at a Glance

All figures refer to 2025 performance
🌾
Agriculture, Forestry & Fishing
+3.1%
Accounts for 23.2% of GDP. Maize production rose to 45.8M bags. Coffee output up to 51.4K tonnes. Horticultural exports up 13.8% to 457.9K tonnes.
🏗️
Construction
+6.8%
Rebounded strongly from a 0.7% contraction in 2024. Government housing expenditure and road infrastructure projects drove growth.
⛏️
Mining & Quarrying
+14.9%
Recovered from a 7.8% contraction in 2024. Boosted by increased production of minerals used in cement manufacturing.
🏨
Accommodation & Food Services
+15.6%
Strongest growth sector. International visitor arrivals via JKIA & MIA rose 6.1% to 1.95M. Hotel bed-nights up to 11.6M. Kenya co-hosted AFCON.
🏛️
Public Administration
+8.3%
Strong public sector wage growth of 4.6%. Government final consumption expenditure grew 8.0%.
🏦
Financial & Insurance
+6.5%
Commercial bank assets grew to KSh 5.76T. Pension fund assets up 24.6% to KSh 2.81T. Market cap increased by KSh 1.0T.
📡
Information & Communication
+4.8%
Mobile money transactions grew 1.3% to 2.7B. International call traffic rose 9.5%. Broadband capacity rose 4.9%.
🚚
Transportation & Storage
+3.7%
Contributes 11.8% of GDP. SGR freight and passenger traffic sustained. Air cargo volumes at JKIA continued growing.
🏭
Manufacturing
+2.4%
Formal employment rose 5.6% — the leading private sector industry. New EPZ investments attracted. AGOA garment exports sustained.

Economic Performance

GDP Growth by Expenditure (2025)
Government Consumption+8.0%
Gross Fixed Capital Formation+5.6%
Private Consumption+4.7%
Exports of Goods & Services+0.1%
GDP Composition by Expenditure
GDP Mix
Private Consumption76.3%
Gross Fixed Capital17.9%
Govt Consumption11.2%
Exports (net)-6.0%
Nominal GDP Figures
Nominal GDP (2025) KSh 17,577.6Bn +8.3%
Nominal GDP (2024) KSh 16,232.3Bn +7.9%
Gross National Income KSh 17,301.5Bn +9.1%
Gross National Disposable Income KSh 18,257.6Bn +8.1%
GDP Per Capita (Current) KSh 329,594 +6.4%
Top Performing Industries 2025
Accommodation & Food Services +15.6%
Mining & Quarrying +14.9%
Construction +6.8%
Financial & Insurance +6.5%
ICT +4.8%

Kenya's GDP grew at 4.6% in 2025, sustained by positive growth across all major sectors. Agriculture remains the backbone, contributing 23.2% of GDP. The economy generated over 822,000 new jobs, though 87% were in the informal sector.

Employment, Earnings & Prices

Employment Overview
Total Recorded Employment21.6M+3.9%
Informal Sector Employment18.1M+716,800 jobs
Modern Sector Wage Employment3.3M+3.1%
New Jobs Created822,10087.2% informal
Construction Industry Jobs+6.7%Highest growth
Wage Earnings (Modern Sector)
Nominal Average Annual EarningsKSh 988,200+5.9%
Real Average EarningsKSh 678,800+2.0%
Total Nominal Wage BillKSh 3,275.8Bn+9.2%
Private Sector Share of Wage Bill71.4%Dominant
TSC's Share of Public Wage Bill37.9%Largest
Inflation by Division (2025)
Food & Non-Alcoholic Beverages7.2%
Overall Headline Inflation4.1%
Transport3.2%
Housing, Water, Electricity0.6%
Inflation Trend (Headline)
20212022202320242025

Inflation eased to 4.1% in 2025 from 4.5% in 2024, driven by declines in fuel, electricity, and cooking gas prices — despite food prices surging 7.2%.

Food Inflation Alert: Food and non-alcoholic beverages recorded the highest inflation at 7.2%, up from 5.6% in 2024. This disproportionately affects lower-income households whose food basket forms a larger share of expenditure.

Money, Banking & Public Finance

Monetary Policy & Interest Rates
Central Bank Rate (Dec 2025)9.00%↓ from 11.25%
Lending Rate (Dec 2025)14.82%↓ from 16.89%
91-day T-Bill Rate (Dec 2025)7.78%↓ from 10.32%
Broad Money Supply M3KSh 6,731.2Bn+11.3%
Credit to Private SectorKSh 7,822.6Bn+9.6%
Financial Sector Assets
Commercial Bank AssetsKSh 5,760.3Bn+10.8%
SACCO AssetsKSh 727.1Bn+11.5%
Pension Fund AssetsKSh 2,810.6Bn+24.6%
NSE Market CapitalisationKSh 2,944.5Bn+51.7%
NSE 20 Share Index3,139.2pts↑ from 2,010.7
National Government Fiscal Position
Projected Revenue (2025/26)KSh 3,383.1BnOrdinary + Grants
Total Expenditure (2025/26)KSh 4,269.6BnUp
Budget Deficit (2025/26)KSh 886.6Bn-5.0% of GDP
Interest Payments (2025/26)KSh 1,097.7BnProjected
Public Debt Composition (Jun 2025)
Total Public DebtKSh 11,393.6Bn+14.5%
Multilateral DebtKSh 3,045.4Bn+9.3%
Bilateral DebtKSh 1,032.5Bn-5.5%
County Revenue (2025/26)KSh 543.9Bn+9.4%

Market Rally: The NSE 20 Share Index surged from 2,011 in 2024 to 3,139 points in 2025 — a remarkable 56% gain. Market capitalisation grew by KSh 1.0 trillion, reflecting improved investor confidence following interest rate cuts.

International Trade & Balance of Payments

Merchandise Trade Summary (2025)
Total Trade VolumeKSh 3.9T+1.9%
Total ImportsKSh 2.8T+2.5%
Total ExportsKSh 1.1T+0.6%
Trade DeficitKSh 1.7TWidened
Current Account DeficitKSh 373.3Bn↑ from KSh 285.5Bn
Export Destinations (2025)
Africa~38%
Europe~22%
Asia~19%
Americas~6%
Key Export Earnings
Exports to AfricaKSh 452.8BnLeading destination
Exports to Uganda (EAC)14.5% share+28.8%
Exports to EuropeKSh 263.7Bn↑ Improved
Exports to AsiaKSh 275.7Bn-13.2%
Exports to AmericasKSh 90.1Bn↓ Declined
Import Sources & External Position
Asia Share of Imports70.0%↑ from 66.4%
Imports from EuropeKSh 347.1Bn-12.5% share
External Financial AssetsKSh 4.6T+10.6%
External Financial LiabilitiesKSh 12.9T+5.0%
Remittance InflowsKSh 965.1Bn-6.5%

Import Dependency on Asia: Asia's share of Kenya's import bill climbed to 70.0% in 2025, up from 66.4% in 2024. This growing concentration raises supply chain vulnerability risks and currency exposure to Asian markets.

Agriculture Sector

Crop Production (2025)
Maize Production45.8M bags+2.4%
Green Leaf Tea Output2,476.7K tonnes-7.8%
Coffee (2024/25 season)51.4K tonnes+3.8%
Sugar Cane Production7,051.9K tonnes-24.7%
Rice Paddy Production303.7K tonnes+6.4%
Wheat Production254.9K tonnes-18.2%
Horticulture & Livestock
Horticultural Export Volume457.9K tonnes+13.8%
Horticultural Export EarningsKSh 143.8Bn+5.3%
Cut Flower Exports130.6K tonnes+27.4%
Cut Flower EarningsKSh 81.3Bn+12.8%
Milk Production5.5 billion litres+3.5%
Marketed Milk1.0 billion litres+11.5%
Agriculture at a Glance

Agriculture grew by 2.8% in real terms in 2025 — a slowdown from 4.3% in 2024. The sector contributes 23.2% of GDP and remains Kenya's economic backbone.

Agric. real growth 20252.8%
Agric. real growth 20244.3%
Concerns & Highlights

Sugar cane production fell sharply by 24.7%, raising concerns for the sugar processing industry. Pyrethrum production also dropped 18.2%.

Fresh vegetables export earnings declined 9.0% to KSh 21.3Bn due to Maximum Residual Level (MRL) notifications and export interceptions in key markets.

Energy Sector

Petroleum (2025)
Petroleum Imports5.5M tonnes+12.2%
Domestic Petroleum Demand5.7M tonnes+9.9%
LPG Consumption475.9K tonnes+14.7%
Petroleum Exports/Re-exports983.5K tonnesSlight decline
Electricity Mix (2025)
Renewables (Geothermal, Hydro, Wind, Solar)~90%
Thermal (Fossil)~10%

Kenya remains one of Africa's leaders in renewable electricity generation. Rural electrification and KETRACO transmission expansion continued in 2025.

LPG Growth — Policy Impact

LPG consumption surged 14.7% driven by the National LPG Growth Strategy — subsidized cylinders for low-income households and installation programmes, reducing reliance on charcoal and wood fuel.

Crude Oil Prices (Global 2025)
Avg. Murban/OPEC Basket (2025)~$68.92/bbl↓ from $79.17
Impact on InflationEasedLower fuel prices
Transport Inflation3.2%↓ from 5.0%

Health & Education

Education Enrolment (2025)
Pre-primary & Primary11.9M learners
Secondary School3.3M learners
University Enrolment722,500+15.6%
TVET & Post-Secondary890,100+19.5%
Adult Education EnrolmentGrowingCBC transition
Health System Indicators
Licensed Doctors & Dentists18,561+4.9%
SHA Members RegisteredGrowing (2024/25)New system
National Govt Health ExpenditureIncreased2025/26 allocation ↑
County Govt Health ExpenditureIncreasedShare rising
Education Highlights

University enrolment reached 722,500 students in 2025 — up from 624,600 in 2024. The TVET sector has grown to 890,100 enrolments, reflecting government investment in technical and vocational skills.

Kenya introduced Grade 9 KJSEA assessment for the first time in 2025 as part of the Competency-Based Curriculum (CBC) rollout, marking a major milestone in education reform.

SHA — New Health Insurance (2024/25)

Kenya transitioned from NHIF to the Social Health Authority (SHA) in 2024/25, with premiums received and benefits payouts now tracked under the new framework.

Adolescent pregnancy remains a concern: Number of adolescents presenting at 1st ANC visit data continues to be tracked across all 47 counties, with county-level variation flagged in the report.

International Scene

Global Economic Indicators (2025)
World Real GDP Growth3.3%= 2024
Advanced Economies1.7%↓ from 1.8%
Emerging Markets & Dev. Economies4.4%↑ from 4.3%
Sub-Saharan Africa4.4%↑ from 4.1%
World Trade Volume Growth4.1%↑ from 3.6%
World Inflation4.1%↓ from 5.8%
Global Unemployment4.9%Unchanged
OECD Country Snapshot (2025)
USA2.0%↓ from 2.8%
UK1.4%↑ from 1.1%
Japan1.3%↑ from -0.2%
Germany0.3%↑ from -0.5%
Euro Area1.3%↑ from 0.8%
China~4.5%Est.
East African Community (EAC)
Kenya4.6%Regional player
Tanzania6.0%↑ from 5.5%
Uganda (top export dest.)14.5% Kenya exports+28.8% growth
Global Macro Context

Global growth was constrained by elevated policy uncertainty, US trade tariff measures, and sluggish productivity. Front-loading by businesses ahead of tariff changes distorted global trade patterns in 2025.

Crude oil fell to ~$68.92/barrel in 2025 from $79.17/barrel, easing inflationary pressures globally and benefiting Kenya's fuel import bill.