Inside Kenya's KSh 17.58 Trillion Economy

Kenya's economy reached KSh 17.58 trillion in 2025, its largest nominal value on record, according to the Economic Survey 2026 released by the Kenya National Bureau of Statistics (KNBS) last week.

• •The economy has expanded fifteen-fold in nominal terms since 2003, when GDP stood at KSh 1.13 trillion.
• •It crossed KSh 10 trillion for the first time in 2019, KSh 15 trillion in 2023, and added a further KSh 1.35 trillion in 2025 alone.
• •Real growth has moderated from a recent peak of 5.7% in 2023 to 4.6% in 2025, but every sector of the economy recorded positive growth in 2025.

The composition of Kenya's KSh 17.58 trillion economy has changed over 16 years. Agriculture, forestry and fishing is the economy's largest sector at KSh 4.07 trillion, accounting for 23.2% of total GDP, up from 16.3% of GDP in 2009.

It grew 3.1% in real terms in 2025, its third consecutive year of positive growth following contractions in 2021 and 2022. The sector's share of GDP has risen from 18.3% in 2014 to 23.2% in 2025, the highest recorded in the current data series.

Financial and insurance activities have grown from 5.8% to 8.3% while accommodation and food services have recovered from a Covid-19 low of 0.7% to 1.7%.

Against these gains, manufacturing has fallen from 11.5% of GDP in 2009 to 7.1% in 2025, the most significant compositional shift in the economy over that period. Real estate has eased from 9.8% to 8.2% and education from 5.5% to 3.8%.

How 2025 Shaped Sectors

Transportation and storage is the second largest sector at KSh 2.08 trillion, or 11.8% of GDP. It grew 3.7% in real terms, supported by increased road and railway activity. Freight transported via the Standard Gauge Railway rose from 6,531.0 thousand metric tonnes in 2024 to 7,332.0 thousand metric tonnes in 2025. Air transport was the exception, contracting 43.7% and dragging the sector's overall performance.

Financial and insurance activities generated KSh 1.46 trillion, equivalent to 8.3% of GDP, and was the leading source of overall GDP growth in 2025 at 13.8% of total growth. Real GVA expanded 6.5%, with the insurance sub-sector growing 12.9% and net premium income from life insurance rising 25.5% to KSh 222.0 billion.
Real estate contributed KSh 1.43 trillion, or 8.2% of GDP, growing 3.9% in real terms. Wholesale and retail trade generated KSh 1.38 trillion at 7.8% of GDP, expanding 3.6%. Manufacturing accounted for KSh 1.25 trillion, or 7.1% of GDP, growing just 2.0% in real terms, its slowest pace in the current series, constrained by a 24.8% decline in sugar production and slower soft drinks output.

Construction contributed KSh 1.14 trillion, or 6.5% of GDP, rebounding to 6.8% real growth after contracting 0.7% in 2024. Cement consumption rose 20.3%, imported iron and steel volumes grew 50.7%, and residential housing completions by the State Department for Housing jumped from 1,655 units in 2024 to 6,738 units in 2025.

Public administration and defense generated KSh 858.8 billion at 4.9% of GDP, growing 8.3%. Education contributed KSh 662.7 billion at 3.8% of GDP, growing 2.8%. Information and communication generated KSh 404.7 billion at 2.3% of GDP, expanding 4.8%, though the value of mobile money transactions declined from KSh 8,698.0 billion in 2024 to KSh 8,236.5 billion in 2025.

Human health and social work contributed KSh 307.8 billion at 1.8% of GDP, growing 5.5%. Accommodation and food services generated KSh 303.7 billion at 1.7% of GDP, posting the fastest real growth of any sector at 15.6%, supported by a 6.1% rise in international and regional visitor arrivals.

Mining and quarrying, though small at KSh 141.7 billion or 0.8% of GDP, posted the second fastest real growth at 14.9%, recovering from a 7.8% contraction in 2024. Electricity supply contributed KSh 250.3 billion at 1.4% of GDP, growing 4.8%, with geothermal generation accounting for 44.8% of total electricity output.