Kenya’s economy expands 5.3% in first quarter of 2026 as tourism, manufacturing and construction drive growth

Kenya's economy recorded stronger growth in the first quarter of 2026, with real gross domestic product (GDP) rising by 5.3 per cent year-on-year, up from 4.9 per cent during the same period in 2025, according to data released by the Kenya National Bureau of Statistics (KNBS).

The latest figures indicate broad-based expansion across all major sectors of the economy, highlighting growing resilience supported by tourism, manufacturing, construction and financial services.

The Kenyan Broadcasting Corporation reported that the strongest performance came from the accommodation and food services sector, which expanded by 14.7 per cent. The growth was supported by a rise in international tourism, with more than 506,000 visitors arriving during the quarter.

Manufacturing also maintained solid momentum, growing 4.4 per cent compared with 2.8 per cent a year earlier. Output increased across several industries, including sugar production, beverages, vehicle assembly, cement and galvanised steel products, reflecting stronger industrial activity and sustained domestic demand.

The construction sector expanded by 6.6 per cent, supported by higher cement consumption and increased financing for infrastructure and real estate projects. Mining and quarrying recorded 9.1 per cent growth, while agriculture – one of Kenya's largest economic sectors – grew 4.9 per cent. Higher production of tea, sugarcane and milk offset weaker coffee and fruit exports.

Meanwhile, electricity generation rose 7.4 per cent, supported by a significant increase in geothermal power production, reinforcing Kenya's efforts to expand renewable energy capacity.