NAIROBI, Kenya, July 10 – Kenya’s economy grew by 5.3 percent in the first quarter of 2026, driven by stronger growth in manufacturing, mining, construction and hospitality, the latest data from the Kenya National Bureau of Statistics (KNBS).
According to KNBS, this was an improvement from the 4.9 percent recorded during the same period in 2025.
KNBS said manufacturing activity accelerated to 4.4 percent in the first three months of the year from 2.8 percent in the corresponding quarter last year.
Mining and quarrying grew by 9.1 percent, while accommodation and food services posted the fastest growth at 14.7 percent as tourism activity continued to recover.
Construction expanded by 6.6 percent, financial and insurance activities grew by 6.3 percent, while the information and communication sector recorded 5.0 percent growth.
Agriculture, forestry and fishing, which remains the country’s largest economic sector, grew by 4.9 percent.
“Other sectors that recorded notable growths include Accommodation and Food Service (14.7%), Mining and Quarrying (9.1%), Construction (6.6%), Financial & Insurance (6.3%), and Information & Communication (5.0%). Agriculture, Forestry and Fishing sector expanded by 4.9 per cent.”
The report also showed mixed performance for the Kenyan shilling during the quarter.
The local currency appreciated marginally against the US dollar by 0.1 percent and strengthened by 2.9 percent against the Japanese yen. However, it weakened by 11.2 percent against the euro and 6.9 percent against the pound sterling.
Regionally, the shilling depreciated by 13.1 percent against the South African rand, 1.5 percent against the Ugandan shilling and 0.5 percent against the Tanzanian shilling.
Meanwhile, broad money supply (M3) rose by 13.1 percent to Sh6.98 trillion at the end of March 2026. Money and quasi-money (M2) increased to Sh5.62 trillion from Sh4.94 trillion recorded a year earlier.
Domestic credit also expanded by 8.9 percent to Sh8 trillion from Sh7.3 trillion in March 2025, largely supported by increased lending to the private sector.
“The growth in domestic credit was mainly due to 8.5 per cent growth in credit to the private sector to KSh 5,167.1 billion in March 2026.”
