Gen Z-led protests, floods dent Kenya's economic growth in 2024 to 4.7 per cent
Kenya's economy grew much slower than anticipated in 2024, recording a GDP growth rate of 4.7 per cent against the projected 5.7 per cent.
Kenya's economy grew much slower in the year to December 2024, compared to the previous year, the Kenya National Bureau of Statistics (KNBS) has revealed.
In its 2025 Economic Survey report, it highlights that the economy grew by 4.7 per cent, down from a revised growth of 5.7 per cent in 2023.
More To Read
- Increased food, energy costs push inflation to 4.1% in April
- Slowdown hits construction sector as fewer buildings being approved in Nairobi
- Frequent commodity price shifts impacting household budget plans - Study
- Report shows shrinking incomes, job cuts straining Kenyan families
- Kenya strides towards gender parity with notable gains in women's inclusion
- Inflation up to 3.5 per cent in February on increased food and transport costs
Commenting on the figures, National Treasury Cabinet Secretary John Mbadi attributed the slowdown to constrained fiscal space, high interest rates, domestic unrest, particularly the June 2024 Gen Z-led protests, and extreme weather events.
However, KNBS notes that the growth, albeit slower than the previous year, was to a large extent supported by activities in Agriculture, Forestry & Fishing which grew by 4.6 per cent, Financial & Insurance Activities (7.6%), Transportation and Storage (4.4%) and Real Estate (5.3%).
Other key sectors that posted significant growth in the period under review are Wholesale & Retail (3.8%), Information & Communication (7.0%), Accommodation & Food Service (25.7%) and Public Administration (8.2%).
“During the period under review, most economic activities recorded positive growth except Construction, and Mining and Quarrying activities,” the report reads.
The sectors contracted by 0.7 and 9.2 per cent, respectively.
“The contraction in construction activities was evidenced by a significant decline in consumption of cement, while that of mining and quarrying activities was manifested in a significant drop in production of key minerals such as construction materials, titanium, salt and gemstones.”
Although growth slowed in 2024, the country’s economic outlook for this year is promising, with recent projections indicating improvement.
The International Monetary Fund (IMF’s latest economic outlook, for instance, upgrades Kenya’s GDP growth prospects in 2025, despite a global and regional slump.
It projects Kenya’s economy to grow by 4.8 per cent this year, up from 4.5 per cent in 2024, and further consolidate at 4.9 per cent by 2026.
Although the lender did not give reasons for the upgrade, the country’s positive trajectory could be a result of the reportedly improving investor confidence, robust domestic demand, and steady policy reforms aimed at fiscal consolidation and economic resilience.
Top Stories Today
Reader Comments
Trending
