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Kenya’s Economy Expands 4.9% in Q3 2025 as Construction and Services Rebound

Kenya’s economy grew by 4.9 percent year on year in the third quarter of 2025, marking a pickup from 4.2 percent recorded in the same period last year, as activity strengthened across several key sectors. The data was released by the Kenya National Bureau of Statistics, which said the improvement reflected a broadening recovery in Africa’s second largest economy by output.

Growth was supported by a rebound in the construction sector, which returned to expansion after contracting a year earlier, while mining and quarrying also made positive contributions, based on official figures from the statistics agency. The agriculture, forestry and fishing sector recorded modest growth, aided by higher milk production and improved exports of cut flowers, Reuters reported.

Service-oriented industries continued to underpin overall performance, with transport, storage and trade activities posting steady gains as domestic demand held up. The statistics bureau noted that resilience in services helped offset pressures linked to fiscal tightening and elevated debt servicing costs tied to past infrastructure investments.

MarketScreener says the stronger third-quarter performance suggests Kenya’s growth momentum is stabilising, though they caution that sustaining the recovery will depend on continued fiscal discipline and supportive macroeconomic policies as the government balances growth with debt management priorities.

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