The Kenya National Bureau of Statistics (KNBS) Quarterly Gross Domestic Product (GDP) report has revealed that all sectors of the economy recorded positive growth during the quarter in the first quarter of 2025.
In the first quarter of 2025, the real GDP grew by 4.9 per cent compared to a similar growth in the corresponding quarter of 2024.
KNBS said most macroeconomic indicators recorded improved performances during the quarter under review.
In the first quarter of 2025, inflation eased to an average of 3.45 per cent from an average of 6.29 per cent in the corresponding quarter of 2024.
This is mainly supported by lower prices of food and non-alcoholic beverages.
Agriculture, Forestry, and Fishing activities grew by 6.0 per cent compared to 5.6 per cent growth in the first quarter of 2024.
This performance was driven by favourable weather conditions experienced in most parts of the country known for crop and animal production.
Manufacturing sector’s GVA grew by 2.1 per cent in the first quarter of 2025 compared to 1.9 per cent growth the previous year.
In the food manufacturing sub-sector, the growth was supported by enhanced performance of coffee auctions, milk deliveries to processors, production of sugar and soft drinks.
Similarly, the non-food manufacturing subsector supported the overall growth in the manufacturing sector with the production of cement, assembled motor vehicles and galvanized sheets recording significant growth.
KNBS Electricity and Water Supply Statistics
Electricity and Water Supply sectors recorded a combined growth of 3.6 per cent in the first quarter of 2025 compared to a growth of 2.8 per cent in the corresponding quarter of 2024.
The growth was largely attributed to increase in total electricity generation, which increased by 5.0 per cent to stand at 3,208.8 million-Kilowatt Hour (kWh), partly driven by growths in wind and solar generation.
Construction
The Construction sector expanded by 3.0 per cent compared to 0.4 per cent recorded in 2024 during the quarter under review.
The growth in the sector was reflected in the increased uptake of inputs into industries such as cement, iron and steel, during the review period.
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Transportation and Storage
The transport sector’s real GDP is estimated to have expanded by 3.8 per cent in the first quarter of 2025 compared to 4.1 per cent last year.
This was buoyed by land transportation and port activities.
The consumption of light diesel, which is a key input in transportation activities, increased to 561.4 thousand metric tonnes in the first quarter of 2025 from 547.6 thousand metric tonnes in a similar quarter of 2024.
Accommodation and Food Service Activities
The sector grew by 4.1 per cent per cent in the quarter under review compared to a growth of 38.1 per cent in the first quarter of 2024.
The number of visitor arrivals via the two major airports, the Jomo Kenyatta International Airport (JKIA) and Mombasa International Airport (MIA) increased by 0.5 per cent in the first quarter of 2025 compared to a 10.4 per cent growth in the first quarter of 2024.
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Information and Communication
The Information and Communication sector grew by 5.8 per cent in the first quarter of 2025, compared to 9.2 per cent growth in 2024.
The volume of outgoing domestic voice traffic rose by 14.8 per cent from 25.2 billion minutes in the first quarter of 2024 to 28.9 billion minutes during the quarter under review.
The use of domestic Short Messaging Services (SMSs) increased from 13.4 billion messages in the first quarter of 2024 to 14.3 billion messages in the first quarter of 2025.
Similarly, the total utilised international bandwidth increased from 11,155.2 Gigabits per second (Gbps) in the first quarter of 2024 to 45,304.4 Gbps during the review period, mainly attributed to the launch of an additional internet service provider in the country.
Additionally, mobile money transactions increased by 38.1 per cent, from 632.7 million in the first quarter of 2024 to 873.9 million transactions in the first quarter of 2025.
Financial and Insurance Activities
The sector recorded a slower growth of 5.1 per cent in the first quarter of 2025 compared to 9.6 per cent growth in the corresponding quarter of 2024.
The Central Bank Rate was revised downwards to 10.75 per cent in March 2025 from 13.00 per cent in March 2024.
However, the cost of credit eased during the first quarter of 2025, with average interest rates on loans and other advances by commercial banks declining to 15.76 per cent in March 2025 from 16.28 per cent in March 2024.
The inter-bank rate declined from 13.42 per cent in March 2024 to 10.68 per cent in March 2025.
The average yield for 91-day Treasury Bills stood at 8.88 per cent in March 2025 from 16.68 per cent in March 2024.
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