Kenya’s economy expanded by 5.3 percent year-on-year in the first quarter of 2026, its fastest pace in more than a year and a sign that the country’s recovery is gathering traction.
According to the Kenya National Bureau of Statistics, the performance improved from 4.9 percent growth in the same period last year and was broad-based across all major sectors. That kind of spread matters because it suggests the recovery is not being carried by one segment alone.
The services sector led the charge, with accommodation and food services posting a sharp 14.7 percent expansion. The rebound was driven by stronger international visitor arrivals through Nairobi and Mombasa, giving tourism-related businesses a lift.
Industry also performed well. Mining and quarrying grew by 9.1 percent, while construction expanded by 6.6 percent, reflected in a 17.9 percent rise in local cement consumption.
Manufacturing rose to 4.4 percent from 2.8 percent a year earlier, supported by stronger output in vehicle assembly, sugar production, and soft drinks.
Agriculture, which remains central to household incomes and domestic demand, also recovered. The sector grew by 4.9 percent after a contraction in the previous quarter, helped by favorable weather conditions. Tea production increased by 3.1 percent, while cane deliveries rose by 6.2 percent.
But the stronger growth picture comes with familiar pressures. Inflation rose to 4.35 percent in the quarter, up from 3.45 percent a year earlier, largely because of higher food and non-alcoholic beverage prices.
Kenya’s current account deficit also widened, moving from 70 billion shillings to 120.9 billion shillings. And while growth is improving, the World Bank has warned that economic gains are still not reaching everyone equally, with as many as 2.4 million more Kenyans remaining vulnerable to poverty if improvements do not filter down to lower-income households.
The economy is moving in the right direction, but the real test will be whether that growth translates into broader and more durable relief for ordinary households. Source Bloomberg
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