Kenya's economy slowed. A drought did it, despite good policy.

Kenya's economy grew slightly slower in 2025, hitting 4.6 percent. This happened even as inflation eased and private credit increased. A severe drought in the final quarter cut agricultural output, overriding other positive economic factors.

Governments often use monetary and fiscal policy to steer economic growth. This report shows how external shocks, like a severe drought, can override those efforts. It highlights the persistent vulnerability of agriculture-dependent economies to climate events, even when other economic factors are positive.