Kenya’s economy expanded by 4.9 per cent in the third quarter of 2025, up from 4.2 per cent a year earlier, largely on the back of a strong rebound in construction and mining sectors, according to the Kenya National Bureau of Statistics (KNBS).
KNBS data show that construction surged by 6.7 per cent, reversing a 2.6 per cent contraction recorded in the same period last year, as activity picked up across building and infrastructure projects. The recovery was supported by a sharp rise in cement consumption, increased imports of iron and steel, and higher credit flows to the sector.
Mining and quarrying recorded the fastest growth, expanding by 16.6 per cent after shrinking by 12.2 per cent in the third quarter of 2024. The rebound reflects renewed extraction activity and improved operating conditions in the sector, which had previously been weighed down by weak demand and operational disruptions.
Overall economic performance improved alongside steady growth in agriculture, forestry and fishing, which grew by 3.2 per cent. Other sectors such as accommodation and food services, real estate, transport and storage, and financial services also posted positive growth, but construction and mining were the standout drivers of the quarter’s recovery.
The construction upturn was further reflected in increased lending to the sector, which rose significantly compared to a year earlier, signalling renewed investor confidence. Mining’s recovery similarly underscored the sector’s growing role in supporting economic expansion.
KNBS reported that inflation averaged 4.42 per cent during the quarter, while the easing of monetary policy helped support credit growth across productive sectors, including construction and mining.
Treasury and Economic Planning Principal Secretary Chris Kiptoo said the improved performance of key productive sectors was critical to raising incomes and sustaining long-term growth, noting that infrastructure development and extractive industries remain central to Kenya’s economic transformation agenda.
