Kenya’s Private Sector Activity Expands, Signalling Strong Economic Recovery

Kenya’s economy is showing new signs of strength as private sector activity expanded again in September 2025, marking the first month of growth since April. According to official data, the country’s business conditions improved significantly, supported by better weather, stronger consumer confidence, and more stability in supply chains.

The expansion was led by agriculture, financial services, and trade, which together boosted employment and investment confidence. Companies reported higher demand for products both locally and internationally, while exports of tea, coffee, and horticultural goods continued to perform strongly.

This growth also reflects Kenya’s increasing role as an East African trade hub. Nairobi’s strategic infrastructure projects — including the modern railway network and the expansion of key highways — have made logistics faster and more reliable. Many businesses have also adopted digital solutions to manage operations, creating more efficiency and transparency in the market.

Economists see this improvement as a sign that Kenya’s economy is entering a more stable and promising phase. The country’s GDP grew by around 5% in the second quarter of 2025, compared to 4.6% in the same period last year. This growth is expected to continue through the end of the year as exports increase and private investment rises.

For the Joint Kenya-Arab Chamber of Commerce and Industry (JKACCI), this progress offers new opportunities for bilateral trade and cooperation. As Kenyan businesses expand, they are increasingly looking to strengthen connections with Arab markets in sectors such as agriculture, renewable energy, technology, and logistics.

The renewed confidence in Kenya’s private sector demonstrates the country’s resilience and forward-looking economic vision. With the right partnerships and continued reforms, Kenya is set to remain one of Africa’s most dynamic economies — open for innovation, investment, and global collaboration.

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