Kenya has delivered one of East Africa’s strongest economic signals of 2026, posting 5.3% GDP growth in the first quarter despite a difficult global backdrop marked by Middle East tensions, pressure on trade routes and unstable energy prices.
The latest performance, up from 4.9% in the first quarter of 2025, represents Kenya’s fastest quarterly expansion since late 2023. It also marks a clear recovery from the 4.0% growth recorded in the final quarter of 2025, reinforcing the country’s resilience at a time when many emerging markets are facing external pressure.
For investors and multinational companies assessing expansion into Africa, the numbers point to an economy with broad-based momentum. Every major sector recorded growth, suggesting that Kenya’s recovery is not being driven by one isolated industry.
Tourism led the charge, with accommodation and food services expanding by 14.7%, compared with 8.0% a year earlier. International passenger arrivals through Jomo Kenyatta International Airport and Moi International Airport rose by 13.1% to 506,622, highlighting Kenya’s continued appeal as a regional travel, business and hospitality hub.
Construction also strengthened, growing by 6.6% as cement consumption rose by 17.9% to 2.76 million tonnes. Credit to the sector increased sharply to KSh 200.6 billion, signalling renewed investor and developer activity. Mining and quarrying expanded by 9.1%, while manufacturing improved to 4.4%, supported by higher output in cement, vehicle assembly, galvanised sheets, sugar and soft drinks.
Kenya’s financial sector also showed healthier activity, growing by 6.3% as lower interest rates began to support credit expansion. Private sector credit rose by 8.5% to KSh 5.17 trillion, while broad money supply increased by 13.1%.
Agriculture, the country’s largest economic sector, grew by 4.9%, helped by stronger tea, sugarcane and milk production.
However, risks remain. The current account deficit widened to KSh 120.9 billion, while average inflation rose to 4.35%. Even so, Kenya’s first-quarter performance strengthens its case as one of Africa’s most closely watched investment destinations.