NAIROBI, Kenya- Kenya’s economic growth slowed to 4.7 percent in 2024 from a revised 5.7 percent in 2023, Kenya National Bureau of Statistics (KNBS) has revealed in its latest report.
This came on the back of multiple economic headwinds, including adverse weather conditions and high interest rates.
“In 2024, Kenya’s real Gross Domestic Product (GDP) grew by 4.7 per cent compared to a revised growth of 5.7 per cent in 2023,” read the report in part.
“The growth, albeit slower than the previous year, was to a large extent supported by activities in Agriculture, Forestry & Fishing (4.6%), Financial & Insurance Activities (7.6%), Transportation & Storage (4.4%) and Real Estate (5.3%).”
The slowdown came despite an overall improvement in some macroeconomic fundamentals.
Inflation eased significantly to 4.5% from 7.7% in 2023, reflecting better food supply and lower fuel prices. Meanwhile, the Kenyan shilling staged a dramatic rebound, strengthening from Sh159.69 to Sh129.36 against the US dollar by the end of the year.
Agriculture, a key contributor to GDP, grew by 4.6%, supported by improved rainfall in the early months of the year.
However, challenges such as localized flooding, rising input costs, and post-harvest losses weighed on the sector’s overall contribution.
The financial and insurance sectors led the growth charge, posting a robust 7.6% growth amid increased digital transactions and mobile money uptake.
The transport and real estate sectors also showed resilience, growing by 4.4% and 5.3% respectively, driven by expanding urban centers and renewed investment in infrastructure.
Despite these gains, the overall slowdown reflects Kenya’s fragile economic recovery in the face of global and domestic uncertainties.
Key sectors such as manufacturing and construction remained sluggish, while unemployment levels, particularly among the youth, continue to pose long-term economic challenges.
