Kenya’s economy grew by 5% in the second quarter of 2025. President William Ruto said he has stabilised the economy. Photo: William Ruto. Source: Twitter This is according to the latest bulletin published by the Central Bank of Kenya, which highlights the country’s monetary and financial developments. In its report, the bank noted that this was an improvement of 0.4%, compared to the same period in 2024. “The economy grew by 5% in the second quarter of 2025, compared to 4.6% in a similar quarter of 2024, mainly driven by a rebound in activity in the industrial sector, resilience of key service sectors, and stable growth of the agriculture sector,” the CBK explained. Which economic sectors recorded growth? After growing by 0.2% in the same quarter of 2024, the industrial sector expanded by 4%.
The services sector grew by 5.7% this year, a slight decrease from 6.1% last year. According to CBK, the growth was driven by the robust performance of the wholesale and retail trade, technology and communication, banking and insurance, and transportation and storage sectors. The agriculture sector’s growth rate stayed steady at 4.4%, down from 4.5% in the same quarter of 2024. How is the Kenyan shilling performing? When compared to key regional and international currencies, the Kenyan shilling remained stable during the week ending October 2, 2025. The local currency traded at KSh 129.24 against the US dollar on Thursday, October 2, compared to KSh 129.26 per US dollar on Thursday, September 25. The shilling exchanged at 19.00, 27.09, 11.23 and 23.10 against the Tanzanian, Ugandan, Rwandan and Burundian currencies, respectively.
According to the CBK, the value of usable foreign exchange reserves remained adequate at USD 10,717 million (KSh 1.39 trillion) (4.7 months of import cover) as of October 2. “This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” it stated. Has Kenya’s economy stabilised? President William Ruto took great delight in the “spirited efforts” his administration made to rescue Kenya from the debt burden and high consumer goods prices. Traders at a market in Nakuru.
During his State of the Nation speech on Thursday, November 21, 2024, the president listed a number of economic achievements made during his presidency. He said inflation also dropped sharply from 9.6% in September 2022 to 2.7% in October 2024, the lowest level in 17 years. What is Kenya’s inflation rate? Kenya’s inflation rate rose from 4.5% in August to 4.6% in September 2025. The Kenya National Bureau of Statistics highlighted the details in the latest Consumer Price Index report. Unga and sugar prices dropped during the period under review, while the cost of electricity increased.
By Japhet Ruto
