Kenya Economy Grows 5.1% in Q2 2026 Driven by Services and Tourism
Kenya’s gross domestic product expanded by 5.1% year-on-year in the second quarter of 2026, matching the growth rate recorded in the first quarter. The steady expansion marks the country's strongest economic performance since the fourth quarter of 2024, continuing to show resilience despite ongoing global headwinds. On a seasonally adjusted quarter-on-quarter basis, national output increased by 1.2%.
The sustained momentum was primarily driven by robust activity in service industries and infrastructure sectors. Utilities led the gains, with electricity and water supply expanding by 7.7%. Accommodation and food services rose by 7.4% on continued momentum in tourism, while information and communication grew by 7.2%. Financial services and construction also posted solid gains of 6.1% and 6.0%, respectively. Conversely, the agricultural sector cooled, growing by 3.5% compared to 3.8% in the prior quarter, partly due to an early conclusion of the long rainy season.
Moving forward, investors will be monitoring whether service sector momentum can continue to offset softer agricultural output. Rain patterns and weather trends will remain key factors for farming recovery, while global economic conditions and trade stability will influence the overall growth trajectory in upcoming quarters.
Key points
- Kenya’s GDP grew 5.1% year-on-year in Q2 2026, matching Q1 growth and maintaining the strongest pace since Q4 2024.
- Services and infrastructure led the expansion, with electricity and water supply rising 7.7% and tourism-related services up 7.4%.
- Agriculture growth slowed to 3.5% in Q2, down from 3.8% in Q1, partly due to the early end of the long rains.
- Seasonally adjusted quarter-on-quarter GDP grew by 1.2%, following a 1.3% increase in the previous quarter.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
How much did Kenya’s economy grow in Q2 2026?
Kenya’s GDP increased by 5.1% year-on-year in the second quarter of 2026, matching the 5.1% growth recorded in the first quarter.
Which sectors drove Kenya’s GDP growth in Q2 2026?
Growth was led by electricity and water supply at 7.7%, accommodation and food services at 7.4%, and information and communication at 7.2%.
Why did Kenya’s agricultural growth slow down in Q2 2026?
Agricultural sector growth slowed to 3.5% in Q2 2026 from 3.8% in Q1, partly because the long rains ended earlier than usual.