(MENAFN) Kenya’s economy expanded by 5.0 percent in the second quarter of 2025, marking an increase from the 4.6 percent growth recorded in the same period last year, according to a report released Tuesday by the Kenya National Bureau of Statistics (KNBS).

The report attributes the growth surge primarily to strong gains in transport and storage, electricity and water supply, as well as financial and insurance sectors.

The transport and storage segment led with a 5.4 percent growth, up from 3.4 percent in Q2 2024, buoyed by higher land transport activity, railway operations, and port throughput. Meanwhile, electricity and water supply saw a sharp rise to 5.7 percent growth, a notable jump from just 1.2 percent previously. Financial and insurance services expanded by 6.6 percent, although this was slower compared to the robust 8.0 percent increase posted last year.

Manufacturing, however, showed signs of weakness, growing only 1.0 percent—down from 3.2 percent in Q2 2024—reflecting subdued output in food, beverages, and textiles.

The KNBS also highlighted that average inflation eased over the quarter, mainly driven by falling prices of food and non-alcoholic beverages, which helped stabilize the broader economy.

The bureau noted that these results are in line with the government’s Bottom-Up Economic Transformation Agenda, which prioritizes industrialization, infrastructure expansion, and job creation.

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