The Economic Survey 2026 by KNBS shows the sector accounted for 7.1 per cent to the GDP, a slight drop from 7.3 per cent in 2024 Kenya's manufacturing sector’s contribution to the economy slowed down in 2025, as industries navigated a tough business environment occasioned by high operating costs and competition from cheap imports.
The Economic Survey 2026 by the Kenya National Bureau of Statistics (KNBS) shows the sector accounted for 7.1 per cent to the GDP, a slight drop from 7.3 per cent in 2024. Total manufacturing output grew by a mare two per cent to Sh3.8 trillion, supported by expansion across both domestic-focused and export-oriented activities.
“The sector’s overall growth was however, constrained by slowed activities across various food-related segments, particularly production of sugar and soft drinks,” KNBS says. Sugar production declined by 24.8 per cent to stand at 613, 000 metric tonnes in 2025.
Although production of soft drinks increased by 4.9 per cent to 703.7 million litres in 2025, this growth was slower compared to 15.6 per cent recorded in 2024. The volume of processed milk increased from 619.1 million litres in 2024 to 701.5 million litres in 2025.
Similarly, processing of meat and meat products, as well as grain milling, increased by 9.8 and 3.4 per cent, respectively, in the period under review. Agro-based manufacturing, however, contracted by 1.2 per cent, compared to a 7.9 per cent growth in 2024. According to the government statistician, the contraction was driven by a 24.8 per cent drop in sugar output and a five per cent drop in fruit and vegetable processing.
Cement production, however, rose from 8.85 million tonnes in 2024 to 10.4 million tonnes, thanks to increased construction activities in the country, including the government's Affordable Housing Project.