Kenya's Growth Slows to 5.1%: Economy Shrugs Off Iran War Shock and Weak RainsKenya's Growth Slows to 5.1%: Economy Shrugs Off Iran War Shock and Weak Rains

The figure is a small step down from the 5.3% recorded in January to March, and it is above the 4.9% of a year earlier. The Kenya National Bureau of Statistics data show a broad but uneven expansion, with utilities and communications running fast while farming and factories lag.

Where the growth came from

Electricity and water supply grew 7.7%, up from 6.5% a year earlier. Information and communication expanded 7.2% and financial and insurance activities 6.1%.

Accommodation and food services grew 7.4%, still strong but well below the 12.8% of the second quarter of 2025. Construction slowed to 6.0% from 7.3%.

Transport and storage grew 4.4%, up from 3.3% a year earlier, even as fuel costs rose. Mwenendo earlier reported on how transport prices rose 15.6% over the year to September.

Farms and factories lag

Agriculture, forestry and fishing grew 3.5%, down from 4.0% a year earlier, a slowdown that fits the below-average rains reported over the period. Manufacturing grew 2.2%, an improvement on 1.3% a year earlier but the weakest of the main sectors listed.

Because agriculture and manufacturing carry many jobs and feed into food prices, their slower pace matters more to households than the headline rate suggests.

Growth eases without stalling

As Mwenendo earlier reported, Kenya's first-quarter growth of 5.3% was already under pressure from household budgets. The second-quarter figure confirms growth is easing rather than collapsing, which gives the Central Bank of Kenya room to hold rates steady.

The risks sit in the second half: higher fuel prices, a weaker tourism comparison and the cost of the Ebola outbreak. The reports reviewed give no full-year forecast.