NAIROBI, Kenya, July 4 – Kenya’s economic growth in quarter one (Q1) of 2025 stagnated at 4.9 percent compared to a similar period last year due to poor performance of hospitality, information, and communication, as well as financial and insurance sectors, which recorded decelerations.
The Kenya National Bureau of Statistics (KNBS) Quarterly Gross Domestic Product Report shows that accommodation and food service activities grew by 4.1 percent between January and March 2025 compared to a rise of 38.1 percent during a similar period in 2024.
The information and communication sector also expanded by 5.8 percent in Q1 of 2025, which is slower than a 9.2 percent expansion in the previous period.
“The Financial and Insurance sector recorded a slower growth of 5.1 per cent in the first quarter of 2025 compared to 9.6 per cent growth in the corresponding quarter of 2024,” the KNBS report shows.
However, sectors in agriculture, forestry, and fishing, as well as manufacturing, electricity, and water supply, improved in the period.
For instance, the manufacturing sector grew by 2.1 percent in Q1 of 2025 in comparison to a growth of 1.9 percent in Q1 of 2024.
“In the food manufacturing sub-sector, the growth was supported by enhanced performance of coffee auctions, milk deliveries to processors, production of sugar and soft drinks,” the data added.
“The volume of coffee auctioned rose by 39.3 per cent from 14,447.0 metric tonnes in the first quarter of 2024 to 20,122.0 metric tonnes in the first quarter of 2025.”
“Milk deliveries to processors increased to 250.6 million litres in the first quarter of 2025 from 218.8 million litres in the first quarter of 2024.”
Similarly, electricity and water supply expanded by 3.6 percent in Q1 of this year compared to 2.8 percent in a corresponding period in 2024.
