Two farmers planting rice in a vibrant green paddy field during sunny weather.
Kenya’s economy accelerated in the first quarter of 2026 as agriculture recovered and most sectors posted stronger performances. Gross domestic product expanded 5.3% year-on-year, up from 4% in the previous quarter and 4.9% a year earlier, according to the national statistics body. Every major sector posted positive growth, with manufacturing, hospitality, mining, construction, and financial services among the strongest performers. Agriculture, the country’s largest sector, grew 4.9% after contracting in the final quarter of 2025. Despite the encouraging start to the year, Kenya faces mounting challenges, including inflation driven by the Iran conflict, rising fuel prices, weaker investment, trade disruptions, and slowing remittances. To cushion households and businesses, the government plans to spend about $305 million on fuel and fertilizer subsidies. However, the additional spending is expected to increase pressure on public finances amid efforts to boost revenue collection.
Bloomberg