Kenya’s economy growth down to 4.0% in Q3 - KNBS

Kenya's economy grew by 4.0 per cent in the three months to September 2024, according to the latest quarterly figures by the Kenya National Bureau of Statistics (KNBS).

The record is a slowdown from the previous two quarters, Q2 and Q1, when the Gross Domestic Product (GDP) grew by 4.6 per cent and 5.0 per cent, respectively.

Compared to the same period, the previous year 2023, the record is a further decline from the GDP growth rate of 6.0 per cent.

KNBS largely attributes the decelerated growth to the general decline in growth in most sectors of the economy.

"The growth was constrained by contractions in construction and mining and quarrying activities," reads the report.

Construction activities contracted by 2.0 percent while mining and quarrying posted a contraction of 11.1 percent.

Conversely, the report notes that the growth was supported by notable performances in agriculture, forestry and fishing with a growth of (4.2%), transportation and storage activities (5.2%), and financial and insurance activities (4.7%).

Others are real estate activities (5.5%), wholesale and retail activities (4.8%) and accommodation and food service activities (13.7%).

The report also highlights that the quarter under review registered mixed performance of key macroeconomic indicators.

Firstly, it says inflation eased to an average of 4.08 per cent in the period under review.

This is from 6.93 per cent in the corresponding quarter of 2023, mainly driven by lower prices of food and non-alcoholic beverages.

Secondly, it notes that the Kenyan Shilling appreciated against all major currencies compared to the corresponding quarter of 2023.

On average, the local currency gained ground against the US Dollar, Euro and Pound Sterling by 10.1 per cent, 9.3 per cent and 7.7 per cent, respectively.

It similarly appreciated against the Tanzania Shilling and Uganda Shilling by 21.2 per cent and 11.7 per cent, respectively.

However, it depreciated by 12.7 per cent and 6.7 per cent against the Japanese Yen and the South African Rand respectively.

Nevertheless, KNBS highlights that the cost of borrowing eased substantially in the period under review.

"The Central Bank Rate (CBR) was reviewed downwards from 13.00 per cent in July to 12.75 per cent in both August and September of 2024 compared to 10.50 per cent for similar months of 2023."