Tourism, transport fuel Kenya’s growth as agriculture and mining struggle

Despite a tough year for farming and mining, Kenya’s economy saw support from the tourism, transport, and communication sectors, according to the 2025 Economic Survey from the Kenya National Bureau of Statistics (KNBS).

Economic growth slowed to 4.7% from 5.7% in 2023.

Agriculture, a major part of the economy, only grew by 4.4%, down from 7.7%.

This drop was due to lower maize harvests and a fall in horticulture exports to Europe, driven by stricter pest rules and transport problems.

Maize production fell from 47.6 million to 44.7 million 90kg bags.

Horticultural exports dropped 14.1%.

These challenges affected the wider economy, especially in rural areas where farming plays a key role.

"Despite increased investment in infrastructure, the number of newly registered road motor vehicles fell sharply by 21.4%, totaling 93,646 in 2024. Similarly, registrations of motorcycles, autocycles, and three-wheelers declined by 4.7% to 72,868,” said KNBS CEO Macdonald Obudho.

However, road transport remained dominant in the transport sector, accounting for 75.1% of its total value.

The sector’s total output rose from Sh3.28 trillion to Sh3.48 trillion, a 6.4% increase. Government spending on road maintenance rose by 20.1% to Sh80.1 billion.

Despite the investment, road safety declined. Road traffic accidents rose by 11.8% to 11,173 cases, raising public concerns as vehicle numbers fell but incidents went up.

Rail transport had mixed performance. Freight on the Metre Gauge Railway rose slightly to 1.03 million tonnes.

Passenger numbers dropped sharply, with MGR carrying 2.52 million people—a 26.9% drop—and SGR carrying 2.45 million, down by 10.3%. Still, SGR revenue rose by 39.4% to Sh4.1 billion, hinting at either higher ticket prices or longer trips.

Tourism was one of the strongest-performing sectors. International visitor numbers rose by 14.7% to 2.39 million, thanks to better marketing, infrastructure, and successful hosting of major events.

Accommodation services saw strong demand. The number of certified hotels rose to 904, made up of 289 gold-rated, 317 silver-rated, and 298 bronze-rated hotels. Bed-night occupancy jumped by 18.9% to 10.26 million.

Cultural and educational tourism also improved. Visits to museums, snake parks, and historical sites climbed by 6.9 percent to 1.15 million. International conferences increased by 2.3% to 999, while local conferences rose by 4.7% to 11,225, supported by higher tourist numbers and global interest.

KNBS data also showed that exports increased by 10.4% to Sh1.12 trillion, while imports rose by 3.3% to Sh2.7 trillion. The trade gap narrowed to Sh1.6 trillion, and the export-import cover ratio improved to 41.1%.

"The United States remained the top source of remittances, contributing Sh354 billion out of a total Sh674.1 billion. China led as Kenya’s largest import partner (Sh576.1 billion), while Uganda was the top export destination (Sh125.9 billion), followed by the U.S. (Sh88.9 billion) and the Netherlands (Sh72.5 billion)," said Obudho.

However, the mining sector recorded a poor performance.

The value of minerals fell to Sh25.5 billion from Sh33.8 billion.

Titanium earnings dropped the most, though soda ash improved from Sh1.7 billion to Sh2.2 billion.

Crude salt earnings plunged by 98.5% to Sh0.8 million, while soapstone fell by 70.2% to Sh21.7 million.