Kenya's Economy Grows 5.1% in Second Quarter as Transport and Hospitality Offset Weaker FarmingKenya's Economy Grows 5.1% in Second Quarter as Transport and Hospitality Offset Weaker Farming
Key Highlights
- Kenya's economy expanded 5.1% in the April to June quarter of 2026, faster than the 4.9% recorded a year earlier but slower than the 5.3% pace of the first quarter.
- Transport and storage growth climbed to 4.4% from 3.3%, while accommodation and food services grew 7.4% and electricity and water supply 7.7%, the fastest of the sectors reported.
- Agriculture, which supports most rural households, slowed to 3.5% from 4% after the long rains ended early, even as average crude prices rose to KSh 13,572.23 ($104.45) a barrel.
Kenya's economy grew 5.1% in the second quarter of 2026, the national statistics office said on Friday, holding above 5% for a second straight quarter even as a sharp rise in global oil prices pushed up the cost of imports and transport.
The figure matters because it shows output held up through a quarter in which average crude prices rose to KSh 13,572.23 ($104.45) a barrel from KSh 8,763.15 ($67.44) a year earlier, according to Capital FM's reading of the release The detail underneath is less even: services carried growth while farming, the largest source of rural incomes, slowed.
Services lead the second quarter
Real gross domestic product rose 5.1% year on year in April to June, up from 4.9% in the same quarter of 2025, Reuters reported via CNBC Africa. Transport and storage and accommodation and food services were the main drivers.
Transport and storage grew 4.4%, up from 3.3% a year earlier. Accommodation and food services, the sector most tied to tourism, expanded 7.4%. Electricity and water supply grew 7.7%, information and communication 7.2%, financial and insurance activities 6.1% and construction 6%.
Farming loses pace
Agriculture, forestry and fishing grew 3.5%, down from 4% in the second quarter of 2025. The slowdown was partly linked to the early end of the long rains, which shortened the main growing season in several areas.
That matters for households beyond the farm gate. Weaker farm output feeds into food prices, and food carries a heavy weight in Kenya's consumer price index, so a slower farm sector can keep living costs high even when headline growth looks steady.
A step down from the first quarter
The second-quarter pace is slower than the 5.3% the economy recorded in the first three months of 2026, which Mwenendo broke down by sector in September. The two quarters together leave first-half growth running above the IMF's full-year forecast of 4.5% for Kenya, a projection set out in the Fund's latest regional outlook.
For the Treasury, steady growth supports revenue collection at a time when it has extended tax relief and is preparing the 2027/28 budget. For businesses, the figures point to resilient demand in services, transport and construction, but softer conditions for firms that depend on farm output and rural spending.
The statistics office's full quarterly report will give the manufacturing, real estate and trade figures that were not included in early reports of the release.
In Summary
- How fast did Kenya's economy grow in the second quarter?
- Real GDP grew 5.1% year on year in April to June 2026, up from 4.9% a year earlier and down from 5.3% in the first quarter.
- Who released the figures?
- Kenya's national statistics office released the quarterly GDP data on Friday 16 October 2026.
- Which sectors drove growth?
- Transport and storage (4.4%) and accommodation and food services (7.4%) led, with electricity and water at 7.7% and ICT at 7.2%.
- How did farming perform?
- Agriculture, forestry and fishing slowed to 3.5% from 4% after the long rains ended early.