Kenya’s economy expanded 4.9% in Q3 2025 compared to 4.2% in Q3 2024 as agriculture, construction, and mining recovered.
- •Agriculture, forestry, and fishing grew 3.2% to a nominal 819.8 Bn, staying near one fifth of total output.
- •Agriculture, the biggest contributor, growth slowed from the 4.0% rate recorded in Q3 2024 with livestock and floriculture supporting expansion.
- •The Central Bank Rate was revised down from 12.75% in September 2024 to 9.50% in September 2025 to stimulate lending, with average commercial bank loan rates declined to 15.07% from 16.91%.
Information and communication grew 4.5% but international bandwidth utilization declined to 14,066 Gbps from 17,411.66 Gbps.
Milk deliveries to processors increased 9.7% to 249.0 million litres from 227.0 million litres a year earlier.
Cut flowers exports rose 36.2% to 31,277 tonnes from 22,960.7 tonnes in Q3 2024. These gains improved household cash flow in dairy regions and lifted activity in input suppliers and packaging firms.
The sector faced headwinds in cash crops and food crops. Coffee exports declined to 8,312.7 tonnes from 17,732.8 tonnes in Q3 2024. Vegetable exports eased to 16,617 tonnes from 20,480.9 tonnes. Fruit exports fell 5.0% to 58,414.5 tonnes from 61,509.5 tonnes.
Sugarcane deliveries slumped to 1,350.0 thousand tonnes from 2,526.7 thousand tonnes. Tea production dipped 2.8% to 118.4 thousand tonnes. The drop in cane and tea reflected lower estates output and delayed payments to farmers in western Kenya and Rift Valley.
Broad Sectoral Recovery
Construction sector rebounded 6.7% after a 2.6% contraction in Q3 2024. Cement consumption increased 16.2% to 2,664.1 thousand tonnes. Iron and steel imports increased to 336,262 tonnes from 220,284.6 tonnes. Bitumen imports increased 7.3% to 19,698.5 tonnes from 18,353.0 tonnes. Credit extended to construction enterprises improved to KSh 195.3 Bn from KSh 129.2 Bn.
Mining and quarrying recovered 16.6% from a 12.2% contraction in Q3 2024. The jump came from soda ash, fluorspar, and quarry stones. Accommodation and food services grew 17.7% as Kenya co-hosted CHAN. International visitor arrivals through JKIA and Mombasa airport increased 9.9% to 578,234 passengers from 526,170 passengers. Transport and storage grew 5.2% with SGR passengers increasing 8.6% to 706,385 while SGR freight declined to 1,698.2 thousand tonnes from 1,720.4 thousand tonnes.
External balances weakened during the quarter. The current account deficit widened to 135.3 Bn from 43.5 Bn in Q3 2024. The variance came from higher goods imports and lower coffee and cane exports. Broad money supply M3 increased to 6,443.7 Bn from 5,992.2 Bn a year earlier.
