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Factory output grew 2.2% in April to June, led by cement

Manufacturing grew 2.2% in the second quarter of 2026, up from 1.3% a year earlier, as cement, iron sheets, sugar and soft drinks rose while milk processing fell, KNBS says.

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2.2%

growth in manufacturing in April to June 2026, up from 1.3% a year earlier

The Kenya National Bureau of Statistics says manufacturing grew 2.2% in the second quarter of 2026 compared with the same quarter of 2025, when it grew 1.3%. The whole economy grew 5.1%, up from 4.9%.

Outside food, the growth came from galvanised iron sheets and cement. Production of sheets rose 19.7% to 92,424 tonnes, and cement rose 10.5% to 2.73 million tonnes.

Food factories had a mixed quarter. Sugar output doubled, from 107,300 to 211,800 tonnes, and soft drinks rose 15.6% to 174 million litres. Milk received by processors fell 3.1% to 263.6 million litres because farms supplied less.

What it cost to run

KNBS says inflation averaged 6.23% in the quarter, up from 3.89% a year earlier, partly because diesel averaged Sh217.8 a litre, 32% more than a year before. Crude oil averaged US$104.45 a barrel, against US$67.44.

Electricity and water supply grew 7.7%, with more power coming from hydro, geothermal and wind and less from thermal plants. Construction grew 6.0%, slower than the 7.3% of a year earlier.

Production, April to Junethousand tonnes
20252026
Cement+260.00
2,469.70
2,729.70
Sugar+104.50
107.30
211.80
Galvanised sheets+15.20
77.20
92.40

Galvanised sheets rounded to the nearest hundred tonnes. Source: KNBS.

Why it matters

  • These are the official figures for what Kenyan factories produced in April to June, the first full quarter after fuel prices jumped.
  • Building materials and sugar grew strongly, while dairy processing shrank as milk supply fell.
  • Diesel at an average of Sh217.8 a litre shows how far transport costs had already risen before the latest price reviews.

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