Blog

The Kenya National Bureau of Statistics (KNBS) mid-2025 report paints a cautiously optimistic picture of Kenya’s economy.
While growth and inflation remain stable, deeper challenges in poverty reduction and external trade imbalances persist — offering policymakers and analysts a clear view of the country’s economic direction.

Key Economic Indicators (Mid-2025)

---

Economic Growth: Momentum Sustained at 5%

Kenya’s 5.0% GDP growth in Q2 2025 reaffirms its position as one of East Africa’s most resilient economies.
Growth is primarily driven by:

• Agriculture: Improved rainfall and mechanization boosted maize, tea, and horticultural yields.

• Services: Financial technology, trade, and education sectors continue to thrive.

• Infrastructure: Ongoing public works in roads, renewable energy, and housing sustain capital formation.

Interpretation:
The 5% growth rate, while below the Vision 2030 target of 7%, reflects a steady post-pandemic recovery and sound macroeconomic management.

---

Inflation: Controlled and Predictable

At 4.6% (September 2025), Kenya’s inflation remains under control — a result of:

• Stable food supply chains.

• Moderate energy prices.

• Effective policy coordination between CBK and the National Treasury.

This figure aligns with recent CBK reports, which show consistent 12-month inflation stability below 5%.
Stable inflation has protected consumer purchasing power and supported business confidence, allowing for predictable pricing in the retail and manufacturing sectors.

External Sector: Persistent Trade Deficit

Kenya’s Balance of Payments deficit (KSh –83.7 billion) reflects continued challenges in the current account, driven by:

• High imports of machinery, fuel, and manufactured goods.

• Sluggish export growth despite diversification efforts.

• Strong service inflows (tourism and remittances) are helping cushion the shortfall.

Policy Insight:
To address the deficit, Kenya needs to:

• Deepen export-led growth through agro-processing and manufacturing.

• Strengthen regional trade integration within the EAC and AfCFTA frameworks.

• Enhance foreign exchange reserve buffers through investment inflows and diaspora remittances.

Producer Prices: A Mixed Signal

The Producer Price Index (PPI) fell by –5.67% in Q1 2025 — signaling:

• Lower input costs for manufacturers.

• Potential easing in consumer prices downstream.
  However, it may also indicate weak industrial demand, suggesting slower activity in Kenya’s manufacturing sector — a long-standing structural issue.

Poverty and Demographics: Growth Without Inclusion

Despite economic growth, 39.8% of Kenyans still live below the poverty line (based on 2022 data).
With a population of over 53 million, this means roughly 21 million people face economic vulnerability.

Key contributors include:

• Rural underemployment.

• Rising urban living costs.

• Limited access to formal financial and digital inclusion channels.

Social Policy Insight:
To achieve inclusive growth, Kenya must focus on:

• Job creation in rural economies via agribusiness and SMEs.

• Affordable education and skills training (digital, technical, and vocational).

• Progressive taxation and social safety programs targeting vulnerable households.

DatalytIQ’s Academy Analysis

For learners and professionals studying Macroeconomics, Development Economics, or Public Policy, Kenya’s 2025 data highlights key analytical themes:

1. Balancing growth and equity: A 5% GDP growth rate is promising, but it must translate into reduced poverty and inequality.

2. Inflation management: Kenya demonstrates the effectiveness of targeted monetary policy in maintaining price stability.

3. Structural transformation: The negative PPI suggests untapped potential in industrialization and value addition.

4. Trade balance challenge: Persistent current account deficits underline the need for export competitiveness and import substitution strategies.

Economic Outlook for Late 2025–2026

• Growth Forecast: Expected to remain around 5.2%, driven by public infrastructure, agriculture, and service sector recovery.

• Inflation: Projected to average 4.5%, barring global fuel or food shocks.

• Policy Priorities:

  • Deepen fiscal discipline.

  • Encourage private sector-led manufacturing.

  • Expand digital financial inclusion to empower SMEs.

Conclusion

Kenya’s 2025 economic indicators reveal a nation on a stable growth path, supported by disciplined macroeconomic management.
Yet, persistent challenges in poverty reduction, industrial competitiveness, and external balance highlight the need for deeper structural reforms.

The KNBS data serves as both a mirror and a guide — showing where Kenya has succeeded and where it must go next to achieve inclusive and sustainable growth.

DatalytIQs Academy Takeaway

Students and professionals can use this data to:

• Build macroeconomic dashboards comparing Kenya’s GDP, CPI, and BOP trends.

• Conduct trend analysis and forecasting using Excel, Python, or R.

• Explore policy simulation models for poverty reduction and inflation control.

Kenya’s inflation landscape in 2025 reflects a period of macroeconomic stability, supported by prudent monetary policy and easing global commodity pressures.
According to the Central Bank of Kenya (CBK), the 12-month inflation rate averaged 4.58% in September 2025, comfortably within the CBK’s target range of 2.5%–7.5%.

This performance underscores the success of CBK’s strategy to contain price volatility while supporting economic growth.

---

Inflation Overview (January – September 2025)

📉 Trend Summary:
Inflation in 2025 has remained remarkably stable, fluctuating between 3.2% and 4.6% throughout the year.
The annual average rate dropped from 4.21% in January to 3.65% in September, showing improving price moderation.

---

Key Drivers of Inflation Stability

🔹 a) Food Prices

• Favorable weather patterns improved agricultural yields, reducing pressure on staple food prices.

• Government interventions in maize, sugar, and fertilizer distribution helped ease food-driven inflation, a key component of Kenya’s Consumer Price Index (CPI).

🔹 b) Fuel and Energy Costs

• Declining global crude oil prices and relatively stable exchange rates contained energy-related inflation.

• Continued diversification into renewable energy (geothermal and solar) also reduced reliance on imported fuel.

🔹 c) Exchange Rate and Import Prices

• The Kenyan shilling stabilized around KES 155–157 per USD, curbing imported inflation.

• CBK’s forex market interventions and foreign-reserve management maintained currency stability, crucial for controlling the cost of imports like petroleum, vehicles, and electronics.

---

Comparison with 2024

Inflation fell sharply from above 5% in early 2024 to below 4% by mid-2025, highlighting:

• Improved supply chains post-pandemic.

• Tighter fiscal discipline and CBK’s cautious policy stance (maintaining Central Bank Rate at 9.5%).

• Reduced speculative demand pressures in the forex and commodities markets.

---

Economic Interpretation (DatalytIQs Academy Insight)

From an academic and analytical perspective, the 2025 inflation pattern offers several lessons:

1. Monetary Policy Effectiveness – The CBK’s calibrated tightening (raising the CBR gradually through 2023–2024, then holding at 9.5%) demonstrates textbook inflation targeting success.

2. Phillips Curve Context – Inflation stability alongside moderate growth suggests Kenya is approaching a short-run equilibrium, balancing price stability and employment.

3. Purchasing Power Impact – Real incomes improved modestly, boosting consumer confidence and retail spending, especially in urban centers.

Students of Macroeconomics, Development Economics, and Financial Policy can analyze Kenya’s 2025 inflation as a model of monetary-fiscal coordination in a developing economy.

Broader Regional and Global Context

• EAC comparison: Kenya’s inflation remains among the lowest in East Africa — Uganda (~4.9%) and Tanzania (~4.7%) show similar stability.

• Global context: Inflation in advanced economies remains higher, averaging 5–6%, underscoring Kenya’s relative success in controlling domestic prices.

• Commodity moderation: Reduced global freight costs and normalized food supply chains supported local price containment.

---

Policy Outlook

The CBK is expected to:

• Maintain the current CBR (9.5%) through Q4 2025 to safeguard price stability.

• Continue close monitoring of exchange rate movements and food supply shocks.

• Support productive credit growth to the private sector as inflation pressures ease.

Forecasts indicate that 12-month inflation may average 4.2% by December 2025, keeping Kenya within its medium-term target band.

Conclusion

Kenya’s inflation trajectory in 2025 highlights the strength of sound macroeconomic management.
With inflation contained below 5%, the CBK has preserved purchasing power while creating room for sustainable growth and fiscal stability.

As Kenya heads into 2026, the focus will shift toward stimulating investment and job creation while maintaining the delicate balance between growth and price stability — a challenge that will test both monetary and fiscal policy agility.

DatalytIQs Academy Takeaway

This dataset provides an excellent opportunity for learners to:

• Practice inflation time-series analysis and forecasting using historical CBK data.

• Examine policy transmission mechanisms between interest rates, inflation, and output.

• Build data visualizations showing Kenya’s inflation trends from 2020–2025 for academic or professional presentations.

Kenya’s financial ecosystem continues to evolve rapidly as data from the Central Bank of Kenya (CBK) reveals sustained growth in Electronic Funds Transfers (EFTs) and steady adaptation in cheque-based transactions.
The data from the Automated Clearing House (ACH) highlights how both businesses and individuals are increasingly shifting toward digital and automated payment systems — a reflection of Kenya’s strong fintech infrastructure and a maturing banking system.

---

Key Highlights (January–July 2025)

---

 Insights from the Data

🔹 a) Consistent Growth in Electronic Funds Transfers (EFTs)

• EFT volumes increased from 1.52 million in January to 1.58 million in July, a 3.9% rise in just seven months.

• The value of EFT transactions climbed from KSh 78.95 billion in January to KSh 88.59 billion in July, marking a 12% growth.

• This consistent expansion reflects the continued adoption of digital banking channels, especially for salary payments, business settlements, and government disbursements.

Interpretation:
Kenya’s economy is rapidly digitizing, with EFTs becoming the preferred channel for large-value domestic transactions. The trend also suggests growing trust in interbank transfers and improved payment infrastructure reliability.

---

🔹 b) Cheque Transactions Still Significant, But Plateauing

• Cheque volumes hover between 1.1 to 1.25 million per month, showing limited growth compared to electronic payments.

• Cheque values remain high, averaging KSh 205 billion monthly, indicating continued use for corporate, institutional, and high-value transactions.

• July 2025 recorded the highest cheque value at KSh 217.2 billion, possibly driven by end-of-quarter settlements and fiscal-year closures.

Interpretation:
While digital payments dominate in volume, cheques still play a crucial role in formal business settlements, corporate transfers, and government payments, especially where documentation and verification are essential.

---

Broader Economic Context

The uptick in EFT activity corresponds with Kenya’s steady post-pandemic economic rebound and digital transformation initiatives, such as:

• The National Payments Strategy (2022–2025) by CBK aimed at enhancing the efficiency, security, and interoperability of payment systems.

• Increased integration between banks, SACCOs, and mobile money platforms.

• A continued push toward cashless government payments (eCitizen, IFMIS) and public-private digital service delivery.

At the same time, high-value cheque use suggests the coexistence of traditional banking instruments within Kenya’s hybrid financial landscape.

---

Comparative Perspective

Observation:
Digital payments are growing faster than cheque transactions — a signal that Kenya’s banking sector is successfully transitioning to a digital-first model. However, the persistent high cheque values underline corporate sector reliance on legacy clearing systems for trust and verification.

---

DatalytIQs Academy Insight

For learners studying Banking, Financial Technology (FinTech), or Monetary Economics, this dataset offers an excellent real-world example of payment system modernization and its link to economic efficiency.

Key analytical points to explore:

• Relationship between EFT growth and monetary circulation.

• Impact of digital payment adoption on transaction costs and banking profitability.

• Trends in cheque clearing vs. mobile and EFT channels as indicators of Kenya’s digital maturity.

You can even model transaction growth rates using time-series forecasting (ARIMA) or trend regression analysis for academic projects or research papers.

---

Policy and Industry Outlook

• EFT dominance is expected to grow further as banks continue to integrate API-driven payment platforms and real-time settlement systems.

• Cheque usage may decline gradually with the rise of RTGS, PesaLink, and mobile-based business solutions.

• The CBK’s push for instant retail payments (under the National Payments Strategy) will likely reshape Kenya’s clearing system over the next two years.

In summary, 2025 marks a turning point in Kenya’s transition from paper-based to fully digital interbank settlements.

---

Conclusion

The CBK’s Automated Clearing House data paints a clear picture of Kenya’s evolving payment landscape — one where electronic fund transfers lead the way in volume and innovation, while cheques remain relevant for high-value business transactions.
This shift underscores Kenya’s status as a regional leader in digital financial inclusion and a key model for emerging markets adopting cashless economies.

Kenya’s external trade performance in 2025 reflects a complex interplay between domestic demand recovery, global commodity prices, and exchange rate adjustments.
According to the Central Bank of Kenya (CBK) Foreign Trade Summary, total exports and imports have remained relatively stable compared to 2024, signaling moderate growth amid global economic uncertainty.

---

Overview of Kenya’s Trade Performance (January–May 2025)

Total exports (Jan–May 2025) reached 1.25 trillion KES, while imports totaled approximately 1.27 trillion KES, resulting in a cumulative trade deficit of ~26 billion KES.

While Kenya continues to record a negative trade balance, the gap has narrowed slightly compared to the same period in 2024 — indicating improved export performance and moderated import growth.

---

Key Observations and Trends

🔹 a) Exports Showing Resilience

• Exports grew steadily from KES 231B in February to KES 258B in May 2025 — a 12% increase within four months.

• The growth is driven by strong performance in:

  • Tea, horticulture, and coffee exports, boosted by favorable global commodity prices.

  • Manufactured goods and minerals, reflecting Kenya’s diversification efforts under Vision 2030.

  • Regional trade, particularly with East African Community (EAC) members.

🔹 b) Imports Remain High but Stabilizing

• Imports rose marginally month-to-month, averaging KES 256B, mainly from:

  • Petroleum and industrial inputs, reflecting recovering manufacturing activity.

  • Machinery, vehicles, and electronics, signaling infrastructure, and digital investments.

• Despite global fuel volatility, the shilling’s stabilization near KES 155/USD helped cushion import costs.

🔹 c) Trade Deficit Narrowing

• Kenya’s trade deficit improved from KES 24.79B in October 2024 to around KES 6B in May 2025.

• This is attributed to:

  • Export diversification, especially in agricultural value chains.

  • Decline in non-essential imports following tighter monetary policy.

  • CBK’s efforts to strengthen forex reserves, ensuring import coverage of around 3.7 months.

Economic Interpretation

Monetary Policy Context

The Central Bank Rate (CBR) remains at 9.5%, signaling a restrictive policy stance aimed at curbing inflation (currently at 4.58%).
This has:

• Controlled excessive import demand.

• Supported the shilling’s exchange rate stability.

• Encouraged local production and substitution.

Fiscal & Trade Policy

The National Treasury continues promoting Buy Kenya, Build Kenya initiatives, local manufacturing incentives, and export promotion zones (EPZs).
These policies appear to be bearing fruit, with export values maintaining upward momentum despite global headwinds.

Comparison with 2024 Performance

• Exports are slightly lower year-on-year due to temporary dips in tea and coffee shipments in early 2025.

• However, imports have declined faster, improving Kenya’s overall trade balance by nearly 25% compared to 2024.

---

DatalytIQs Academy Insight

For learners studying International Trade, Macroeconomics, or Development Economics, this data offers real-world insights into:

• Trade deficit dynamics and their implications for currency stability.

• The impact of monetary policy on imports and exports.

• How diversification in export structure strengthens resilience against global shocks.

It also provides an excellent case for classroom analysis or research projects on:

• Kenya’s terms of trade trends,

• Balance of payments, and

• Export elasticity relative to exchange rate movements.

Policy Outlook and Forecast

Looking ahead, Kenya’s external trade is expected to:

• Maintain moderate growth in exports as global demand for agricultural commodities stabilizes.

• Benefit from regional trade agreements (AfCFTA & EAC expansion), opening new markets.

• Face mild headwinds from high oil import bills and geopolitical tensions affecting shipping routes.

If current trends persist, Kenya’s 2025 full-year trade deficit could fall below KES 70 billion, marking a key milestone toward external balance sustainability.

Conclusion

Kenya’s foreign trade data underscores a cautiously optimistic outlook.
Exports are gradually recovering, imports are under control, and macroeconomic indicators remain stable.
This environment reflects CBK’s effective policy coordination and a growing ability to withstand global shocks — signaling a positive trajectory for Kenya’s economy in 2025.

The Central Bank of Kenya (CBK) has released its latest data on key monetary indicators, giving investors and analysts insight into the current direction of Kenya’s financial markets.
The figures show a careful balancing act between maintaining price stability and supporting economic growth.

Key Financial Indicators (as of October 2025)

---

Treasury Bills & Bonds: What Investors Should Know

CBK continues to offer Treasury Bills (T-Bills) and Treasury Bonds (T-Bonds) through its DhowCSD platform, allowing both institutional and retail investors to participate directly in government securities.

 Auction Insights:

• The 91-day T-Bill yield has risen slightly to 7.924%, showing stronger demand for short-term government paper as investors hedge against uncertainty.

• Long-term T-Bond yields (through KESONIA) hover around 9.5%, maintaining attractiveness for investors seeking medium-term stability.

---

Monetary Policy Perspective

The Central Bank Rate (9.5%) suggests that CBK remains cautious about easing, even with inflation under control.
This stance helps:

• Keep the Kenyan shilling stable against foreign currencies,

• Manage inflation expectations, and

• Maintain investor confidence in government securities.

However, the relatively high lending rate (15.17%) continues to constrain private-sector credit growth — particularly for small and medium enterprises (SMEs).

---

Macroeconomic Snapshot

Kenya’s inflation rate of 4.58% (September 2025) sits comfortably within the target range, largely due to:

• Stable food prices,

• Moderated fuel costs, and

• A strengthening shilling following increased remittances and agricultural exports.

The combination of a moderate inflation rate and a steady CBR indicates that Kenya’s monetary policy is in a holding pattern, balancing growth support with fiscal discipline.

---

Analyst View (DatalytIQs Academy Insight)

For students and professionals studying Monetary Policy, Financial Markets, or Investments, these numbers provide a practical case study on how central banks:

• Influence market interest rates,

• Manage inflation expectations,

• And maintain liquidity through open market operations.

Investors can interpret the current landscape as favorable for fixed-income instruments like T-Bills and Bonds, but less supportive for private borrowing.

---

Investment Takeaway

• T-Bills (91-day, 182-day, 364-day): Ideal for risk-averse investors seeking predictable short-term returns.

• T-Bonds: Better for long-term investors looking to lock in higher yields around 9–10%.

• Equities and SMEs: May experience slower growth due to higher lending costs.

Educational Perspective

For learners at DatalytIQs Academy, this is an ideal moment to:

• Analyze the relationship between the Central Bank Rate and market interest rates.

• Practice yield curve interpretation using CBK’s Treasury data.

• Simulate investment decisions between short-term bills and long-term bonds based on expected inflation trends.

Conclusion

Kenya’s financial system remains resilient under a watchful CBK.
While interest rates stay elevated, inflation stability and consistent bond yields provide confidence for investors and policymakers alike.
The months ahead will likely see cautious optimism as the Central Bank weighs growth, inflation, and fiscal sustainability in its next policy meeting.

As the week begins, U.S. markets opened with cautious optimism, reflecting a blend of investor confidence and anticipation ahead of major corporate earnings reports.

Market Overview (as of October 5, 2025)

 The Dow Jones and Russell 2000 led gains, driven by renewed investor interest in industrial and small-cap stocks.
Meanwhile, the Nasdaq slipped slightly as investors rotated away from high-growth tech sectors.

---

Corporate Highlights

Google Finance data shows several key tickers on investors’ radar:

• Tesla (TSLA) – $429.83, down −1.42%: Pressure continues as investors weigh electric-vehicle demand versus production costs.

• Amazon (AMZN) – $219.51, down −1.30%: Decline linked to cautious e-commerce forecasts despite solid cloud performance.

• Equity Metals Corp (EQTY) – $0.23, up +2.27%: Minor mining stocks showing resilience amid stable commodity prices.

---

Earnings Calendar

The market is turning its attention to upcoming earnings releases that could set the tone for Q4:

Energy, consumer goods, and financial sectors will headline the week — offering investors key insights into oil performance, consumer spending, and bank profitability.

---

Regional Snapshot

• Europe & Asia indices remained steady**, with cautious optimism amid central-bank policy updates.

• Currencies and Crypto markets stayed muted, signaling investors’ focus on corporate fundamentals rather than macro speculation.

---

Analyst Insight (DatalytIQs Academy Perspective)

The market tone suggests stability rather than exuberance.
While industrials and small-caps outperform, the tech slowdown (seen in the Nasdaq) could present long-term buying opportunities for investors focused on AI, automation, and renewable technologies.

As the earnings season unfolds, traders and students alike should track:

• EPS growth trends across major sectors.

• Consumer and manufacturing data releases.

• Monetary policy signals from the U.S. Federal Reserve.

Learning Takeaway for Students

For learners at DatalytIQs Academy studying Financial Markets, Quantitative Analysis, or Investment Economics, this snapshot demonstrates:

• Market rotation mechanics (sectoral shifts between tech, industrials, and energy).

• The impact of corporate earnings announcements on market sentiment.

• How indexes like Dow, S&P, and Nasdaq reflect broader economic expectations.

As Q4 2025 begins, the U.S. equity market continues to show resilience despite global uncertainty.
Investors are balancing optimism in cyclical sectors with caution toward overvalued tech stocks — a theme that could define portfolio strategies heading into 2026.

New research suggests that some of the same drugs used to treat diabetes and obesity could also help people struggling with alcohol use disorder (AUD) — a condition that affects millions worldwide.

Researchers from the U.S. National Institute on Alcohol Abuse and Alcoholism have found that medications targeting two gut-hormone receptors, GLP-1 (glucagon-like peptide-1) and GIP (glucose-dependent insulinotropic polypeptide), may help reduce alcohol consumption and improve liver health. These hormones are already known to regulate appetite, metabolism, and blood sugar levels.

---

🧬 Genetic Evidence of a Protective Effect

Using data from more than 700,000 participants in the UK Biobank and Million Veterans Program, the team applied a technique called Mendelian randomization, which links genetic differences to biological effects.

They discovered that people with naturally higher GLP-1 and GIP activity — which mimics the effects of modern diabetes drugs such as semaglutide or tirzepatide — were less likely to engage in heavy or binge drinking.

• 🍺 Reduced binge drinking: Genetic proxies for higher GLP-1/GIP activity correlated with fewer episodes of heavy drinking.

• 💚 Better liver health: These same genes were associated with lower rates of non-alcoholic fatty liver disease (NAFLD) and improved ALT enzyme levels.

• 🥦 Healthier food choices: Participants with these variants tended to prefer vegetarian or low-fat foods, suggesting shared pathways between appetite control and alcohol craving.

---

⚕️ How It Works

The study implies that GLP-1 and GIP receptor agonists, drugs that boost the action of these hormones, may calm both metabolic and reward systems in the brain. This dual action could reduce cravings for both food and alcohol, supporting previous animal and clinical studies showing that GLP-1 drugs dampen the brain’s dopamine-driven reward circuits.

“Pharmacological modulation of GLP-1 and GIP through dual receptor agonists shows promise in reducing alcohol consumption,” said Joshua Reitz and Daniel B. Rosoff, co-authors of the study published in Molecular Psychiatry (2025).

---

🔮 Future Potential

Although this research used genetic modeling rather than direct drug trials, it builds a compelling case for testing diabetes drugs in alcohol addiction treatment. If confirmed through clinical studies, GLP-1/GIP-based therapies could offer a new, biologically targeted way to manage AUD — helping patients control both their appetite and alcohol intake, while protecting their liver and cardiovascular health.

The Sun Is Waking Up: Scientists Warn of Rising Solar Storms Ahead

After decades of relative calm, our nearest star is stirring once more. Astronomers report that the Sun is becoming increasingly active, with a growing number of sunspots, solar flares, and coronal mass ejections lighting up its surface.

According to recent findings from NASA’s Solar Dynamics Observatory, the Sun has been steadily “waking up” over the past 17 years — reversing a long decline that began in the 1980s. During that time, each 11-year sunspot cycle saw fewer flares and weaker magnetic fields, leading some researchers to suspect that the Sun might be heading toward a new “grand minimum,” a prolonged period of low activity last recorded in the 1830s.

But that prediction didn’t hold. “All signs were pointing to the Sun going into a prolonged phase of low activity,” said Jamie Jasinski of NASA’s Jet Propulsion Laboratory. “So it was a surprise to see that trend reversed. The Sun is slowly waking up.”

---

What the Data Shows

Jasinski’s team analyzed observations from multiple spacecraft studying the solar wind — the stream of charged particles continuously flowing from the Sun. Since 2008, several key indicators have climbed sharply:

• ☀️ Solar-wind velocity: ↑ 6%

• ☀️ Solar-wind density: ↑ 26%

• ☀️ Solar-wind temperature: ↑ 29%

• ☀️ Magnetic field strength: ↑ 31%

These jumps signal stronger magnetic activity within the Sun’s outer layers — the engine behind solar storms and space weather.

Impacts on Earth and Space

While this renewed solar vigor produces stunning auroras visible farther from the poles, it also brings risks. More frequent geomagnetic storms can disrupt satellite communications, navigation systems, and even power grids on Earth. Astronauts and spacecraft are particularly vulnerable to bursts of high-energy radiation from solar flares and coronal mass ejections (CMEs).

What Comes Next

Scientists are still unsure why the Sun’s activity has rebounded, though such fluctuations are not unprecedented in solar history. For now, researchers are closely monitoring the current solar cycle 25, which appears to be stronger than expected.

As our star continues to “wake up,” we can expect more dazzling night-sky shows — and a few technological challenges — in the years ahead.