Kenya’s economy grew by 5.1 per cent in the second quarter of 2026, up from 4.9 per cent recorded during the same period last year, supported by improved performance in services and manufacturing sectors.
According to the Central Bank of Kenya (CBK) monetary and financial developments report released on October 23, growth was driven by transport and storage, accommodation and food services, information and communication, finance and insurance, electricity and water supply, and manufacturing.
The services sector expanded by 5.8 per cent, compared with 5.5 per cent in the second quarter of 2025. However, agriculture and industry growth slowed to 3.5 per cent and 4.4 per cent, respectively.
The Kenyan shilling remained relatively stable, exchanging at KSh129.91 against the US dollar on October 22, compared with KSh129.81 a week earlier.
Foreign exchange reserves stood at USD14.693 billion, equivalent to 5.9 months of import cover, exceeding the CBK’s statutory minimum requirement of four months.
In the money market, commercial banks held average excess reserves of KSh32.1 billion, while the Kenya Shilling Overnight Interbank Average remained stable at 8.75 per cent.
Meanwhile, Treasury bills attracted bids worth KSh28.8 billion against an advertised KSh28 billion, representing a performance rate of 103 per cent. Interest rates on the 91-day, 182-day and 364-day Treasury bills declined during the week.
At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 indices fell by 4.56 per cent, 0.51 per cent and 0.39 per cent, respectively.
CBK attributed sharp increases in shares traded and equity turnover to a block trade involving 4.5 billion Kenya Power shares valued at KSh42.5 billion.
Globally, Murban crude oil prices rose to USD108.23 per barrel, while gold prices declined to USD4,024.24 per ounce amid shifting investor sentiment and geopolitical risks.
