Kenya's Economy Grows 5.1% in Q2: Power, Telecoms and Finance Outrun Slower Farming and ConstructionKenya's Economy Grows 5.1% in Q2: Power, Telecoms and Finance Outrun Slower Farming and Construction

The figures matter because they show growth holding up while the long rains ended early and global energy markets turned volatile.

The Kenya National Bureau of Statistics (KNBS) said average crude oil prices rose from KSh 8,748 ($67.44) to KSh 13,548 ($104.45) a barrel between the two periods, while the early end of the March to May rains cut expected crop output.

Which sectors carried the quarter

Electricity and water supply led the large sectors with growth of 7.7%, which the bureau tied to more renewable generation and less reliance on thermal plants. Accommodation and food service grew 7.4%, information and communication 7.2% and financial and insurance activities 6.1%.

Transport and storage improved to 4.4% from 3.3% a year earlier. Wind generation rose 13.5% to 469.8 million kilowatt-hours, while thermal generation fell 16.3% to 288.4 million kilowatt-hours. Total electricity sales rose 15.0% to 3,511.6 million kilowatt-hours.

Where growth slowed

Agriculture, forestry and fishing grew 3.5%, down from 4.0% in the second quarter of 2025. Construction slowed more sharply to 6.0% from 7.3%.

Within farming the picture was mixed. Tea output rose 11.1% to 162.6 thousand tonnes from 146.3 thousand tonnes, and coffee exports rose 10.0% to 22,046.4 tonnes. Milk intake fell 3.1% to 263.6 million litres, and fruit exports fell 5.8% to 76,084.0 tonnes.

What manufacturing and industry data show

Factory output was uneven. Cement production rose 10.5% to 2,729.7 thousand tonnes and galvanised sheet output rose 19.7%. Soft drink production rose 15.6% to 174.0 million litres, and sugar output roughly doubled to 211.8 thousand tonnes from 107.3 thousand tonnes. Processed milk output declined.

Company results reflect the same split between recovering and pressured businesses. As Mwenendo earlier reported on how Unga Group lifted profit but booked a second-half loss, cash flow can lag headline gains even when volumes improve.

What it means for households and investors

A faster headline rate does not reach every household equally. Farm incomes depend on rainfall and input costs, and a higher oil price feeds into transport and food bills. Mwenendo's analysis of how the pump pays first when oil jumps explains that chain.

For investors, the data supports a picture of steady expansion led by services and power. Mwenendo also reported that foreign investors net sold KSh 737M of shares in a recent week, a reminder that market sentiment and output data do not always move together.