Revealed: Where Kenyans Are Investing Their Money in 2025
Kenya’s economy in the first quarter of 2025 was largely driven by strong performances in the agriculture, forestry, and fishing sectors, according to a newly released report by the Kenya National Bureau of Statistics (KNBS).
These sectors grew by 6.0 percent, rising from a growth of 5.6 percent in the same quarter last year. The improvement was mainly credited to favourable weather conditions that boosted agricultural activities across key farming regions in the country.
The report highlights that the improved weather played a key role in increasing production in various agricultural subsectors. For instance, milk deliveries to processors saw a notable rise—from 218.8 million litres in the first quarter of 2024 to 250.6 million litres during the same period in 2025.
Similarly, coffee exports rose significantly, increasing from 9,722.3 metric tonnes to 16,894.4 metric tonnes in Q1 2025. This reflects a renewed confidence and investment in agriculture by both small-scale and large-scale farmers.
Beyond agriculture, several other sectors also contributed significantly to the country’s Gross Domestic Product (GDP) growth.
The information and communication sector expanded by 5.8 percent, showcasing growing investment in digital infrastructure, mobile services, and internet usage. The wholesale and retail trade sector grew by 5.4 percent, supported by increased consumer spending and business activities across urban and rural areas.
Real estate followed closely with a 5.3 percent growth, reflecting increased demand for housing and commercial properties. Financial and insurance services also performed well, growing at a rate of 5.1 percent, signaling rising trust and activity in banking, credit, and insurance services.
Interestingly, public administration recorded one of the strongest performances, growing by 6.5 percent. This was mainly driven by higher government expenditure and expanded delivery of public services, including national and county-level development initiatives.
Overall, Kenya’s economy grew by 4.9 percent in the first quarter of 2025, maintaining the same growth rate as observed in Q1 2024. All sectors of the economy recorded positive growth, though at different levels, showing a widespread economic recovery despite global and domestic challenges.
The professional, administrative, and support services sector also grew, posting a 4.6 percent increase. This was attributed to rising demand for business outsourcing, consultancy, and related services as companies sought efficiency and cost-cutting solutions.
Meanwhile, the transport and storage sector saw a 3.8 percent growth, thanks to a rise in freight activities and general improvement in logistics services. Mining and quarrying saw the most dramatic recovery, surging by 10 percent after sluggish performance in previous periods.
This bounce-back was linked to growing local and international demand for minerals, as well as the revival of halted mining operations.
Construction also showed moderate growth at 3.0 percent, supported by ongoing infrastructure projects and private sector developments.
However, not all sectors performed strongly. The accommodation and food services sector experienced a significant slowdown, growing only by 4.1 percent compared to a sharp 38.1 percent jump during the same period last year.
The decline was largely attributed to fewer international tourists visiting the country and reduced household spending on leisure and hospitality due to economic pressure.
Despite the mixed performance across different sectors, Kenya’s economic outlook remains optimistic.
The data points to a steady recovery path, underpinned by strong growth in agriculture, services, and industrial sectors. While tourism faces some hurdles, most other areas show promising signs, encouraging continued investment and growth in various parts of the economy.
Join Gen Z New WhatsApp Channel To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
